Avalanche (AVAX) announced that its blockchain will power Securitize’s bid to launch a pan-European trading and settlement system. The announcement came on November 27.
Securitize, a leading real-world asset (RWA) tokenization platform, had obtained full regulatory approval from the Spanish CNMV to operate the European Union’s first blockchain-based trading and settlement system.
Avalanche’s near-instantaneous settlement time and configurable architecture for institutional use convinced Securitize to choose the network. This has boosted short- and long-term confidence in Avalanche and AVAX.
Evaluating metrics and their impact on sentiment
Source: Token Terminal
Token Terminal revealed that Avalanche averaged 23 transactions per second and had approximately 30,000 daily active addresses over the past ten days. This tps figure was comparable to Ethereum (ETH), but Avalanche has a much higher capacity of 4,500 tps with a finality of 2 seconds, according to Nansen.
The choice of Securitize highlights a network operating well below its maximum throughput, which is an adoption choice and not technological limitations.
The impact of this recent development on the AVAX token has been notable. It rose 7.4% in the 8 hours following the press release, but has remained calm since – trading between $14.9 and $15.
Source: CoinGlass
The rapid rally started at $13.9 and left behind highly leveraged long liquidation levels around $13.65. The liquidation chart also revealed that long liquidations around price prevailed over short liquidations.
Therefore, a move south to chase these selloffs is a threat to be aware of this weekend.
Source: AVAX/USDT on TradingView
The 4-hour price action showed that the downward trend from the beginning of the month was slowly reversing. Former resistance levels were converting into supports, with $14.84 being the last.
The rally of the last few days has left a significant imbalance (white) around the $14 mark. Additionally, as the liquidation map shows, long liquidations around $13.65 were a short-term target.
Therefore, a return to between $13.5 and $13.7 would present a buying opportunity. On the other hand, a fourth half trading session closing below $13.91 would constitute a structure breakout. This would be a warning sign that the bulls could be losing strength.
Final Thoughts
- Securitize news boosted demand and near-term bullish momentum for AVAX and Avalanche
- A group of long liquidations just below the $14 level could play a role in determining AVAX’s next price movement.
