Avalanche [AVAX] recently announced that its blockchain will be powering Securitize’s endeavor to launch a pan-European Trading and Settlement System. This significant announcement was made on November 27th.
Securitize, a prominent platform for tokenizing real-world assets (RWAs), has obtained full regulatory authorization from Spain’s CNMV to operate the European Union’s first blockchain-based trading and settlement system.
The decision by Securitize to opt for Avalanche’s network was influenced by the platform’s near-instant settlement time and architecture that is customizable for institutional use. This has instilled confidence in both the short-term and long-term potential of Avalanche and AVAX.
Examining the metrics and their impact on the market sentiment
Token Terminal data revealed that Avalanche has been averaging 23 transactions per second and has maintained approximately 30k daily active addresses over the past ten days. This transaction per second figure is comparable to Ethereum [ETH], but Avalanche boasts a significantly higher capacity of 4,500 tps with a finality of 2 seconds, as reported by Nansen.
Securitize’s preference for a network that operates well below its maximum throughput signifies a choice driven by adoption rather than technological limitations.
The impact of this recent development on the AVAX token was evident. It surged by 7.4% in the 8 hours following the announcement, but has since stabilized, trading within the $14.9-$15 range.
The quick rally began at $13.9, resulting in high-leverage long liquidation levels around $13.65. Analysis of the liquidation map indicated that long liquidations at that price level outnumbered short liquidations.
Hence, a potential downside move to trigger these liquidations poses a risk to consider over the weekend.
Source: AVAX/USDT on TradingView
The 4-hour price action depicted a gradual reversal of the previous downtrend earlier in the month. Former resistance levels were being transformed into supports, with $14.84 being the latest support level.
The recent rally has created a significant imbalance (white) around the $14 mark. Additionally, as indicated by the liquidation map, short-term target long liquidations around $13.65 were identified.
Hence, a retracement to the $13.5-$13.7 range could present a buying opportunity. Conversely, a close below $13.91 in an H4 trading session could signify a structural breakdown, signaling a potential loss of bullish momentum.
Key Takeaways
- The announcement by Securitize has spurred demand and bullish momentum in the short term for AVAX and Avalanche.
- The concentration of long liquidations just below the $14 level may influence AVAX’s next price movement.
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