Avalanche gains momentum but this chart signals a cold front

Another piece of data shows that Avalanches stablecoin network has started to rebound. It has over $2.1 billion in stablecoin market cap, the highest it has been since Feb. 19. This is up from $1.46 billion on January 20.

Decentralized exchange protocols on Avalanche are also seeing high volume recently. It handled over $131 million in volume in the last 24 hours, the third day of gains.

Avalanche scores with FIFA NFT deal, technicals show…

Avalanche gained traction after the Fédération Internationale de Football Association, or FIFA, said that it would tap its network to power its NFT sales.

This is a big deal for Avalanche because of FIFA‘s scale and the plunge in its chain’s NFT sales in the past few years. These sales stood at just $103,000 in the last seven days.

AVAX price chart | Source: crypto.news

The three-day chart shows that the AVAX price formed a double-top pattern at $55.20 and then crashed. A double-top is one of the most bearish patterns in technical analysis.

It is hovering above the upper side of the neckline at $17.5, its lowest point in August last year. AVAX has also formed a bearish flag pattern, consisting of a vertical line and a rising channel.

Avalanche price also remains below the 50-week and 200-week Weighted Moving Averages. Therefore, the most likely scenario is where Avalanche price has a bearish breakdown despite its strong ecosystem metrics. If this happens, the next target price will be $15, down by 27% from the current level.