In a recent post on X, Wu Blockchain disclosed that gas consumption for Avalanche’s C-Chain surged above $20 million in the past week. The post highlighted that 72.3% of this consumption was attributed to inscription activity, which also constituted 86.5% of the transactions on the network during the same period.
- A Dominant 72.3% of Network Gas Usage Linked to Inscription Activity on AVAX
- AVAX Faces Key Support Test, Technical Indicators Indicate Potential Further Decline
- Wu Blockchain Discloses Over $20 Million Gas Consumption on Avalanche’s C-Chain
Avalanche C-Chain Gas spent more than $20 million in the past seven days. In the past 7d, inscription activity accounted for 72.3% of the gas consumption and 86.5% of the transactions on the Avalanche C-Chain. Gas fees briefly spiked past 5,000 nAVAX ($4.5) when Trade Joe…
— Wu Blockchain (@WuBlockchain) December 18, 2023
As of the current moment, AVAX’s price has experienced a decline of 7.91%, as reported by CoinMarketCap. Consequently, the cryptocurrency is presently traded at $39.01. Despite this 24-hour loss, AVAX’s price has shown resilience with a weekly gain exceeding 10%. Additionally, the altcoin maintains its position as the ninth-largest cryptocurrency by market capitalization, boasting a valuation of $14.26 billion.
AVAX successfully surpassed the $37.15 resistance level in recent days. Following this breakthrough, the altcoin entered a consolidation phase. Nevertheless, current market dynamics indicate a trend of traders divesting their AVAX holdings, with the altcoin nearing a critical support level.
If AVAX concludes a daily candle below $37.15 within the next 48 hours, there is a potential for a decline, possibly reaching as low as $27 in the subsequent week. Conversely, maintaining a position above $37.15 might pave the way for AVAX to ascend towards the short-term resistance at $52.60. The price action in the coming days will be crucial in determining the altcoin’s direction.
Indicators on AVAX’s daily chart signal a potential price decline in the coming days. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators are currently exhibiting bearish signals as of the present time.
The MACD line approaching the MACD signal line suggests a potential bearish trend reversal for AVAX, especially if the two lines intersect. Moreover, the RSI line recently dropped below the RSI Simple Moving Average (SMA) line in the preceding days, indicating a shift in favor of sellers over bulls in the market. These technical signals collectively imply a challenging scenario for AVAX in the near term.
