Avalanche Price Nears 60% Jump Ahead of Granite Upgrade as AVAX Burn Rate Jumps

Avalanche price crashed to a crucial support level this week as the recent crypto market plunge accelerated. AVAX was trading at $16.70 today, Nov. 7, down sharply from the October high of $36. Technicals suggest that a rebound is possible as the burn rate jumps ahead of the Granite Upgrade.

Avalanche Price Could Benefit from the Rising Burn Rate and Granite Upgrade

The Avalanche price has crashed despite it having some major catalysts that may drive its performance in the near term..

One of the main catalysts is the upcoming Granite upgrade, which will activate on November 19. This activation will see it moves from the current Fuji testnet where community members are testing it.

This is one of the biggest upgrades since Avalanche network launched. It will introduce features like biometrics, which will introduce new capabilities like secure identity verification and an enhanced user authentication process.

The Granite Upgrade will also introduce new features, including faster transactions and enhanced ICM verification with P-Chain epoched views. It is common for a cryptocurrency to jump ahead of a major upgrade.

That other major catalyst for the AVAX price is that the number of transactions have jumped in the past few months.. Data compiled by Nansen shows that it is one of the fastest networks in the crypto industry. Its network’s transactions rose by 50% in the last 30 days to 58.1 million, boosting its fee to $1.6 million.

The happenings in its network are important because it burns most of the fees, a move that aims to reduce its inflation. Data shows that the amount of fees burned in October jumped to the highest level since March last year. The lifetime AVAX burned has jumped to nearly 5 million.

One area where Avalanche is winning is in the real-world asset (RWA) tokenization industry, where it handled over 66% in the last 30 days to over $1.2 billion.

AVAX Price Could be on the Verge of a Rebound

The daily timeframe chart shows that the AVAX token has plunged from a high of $36 in September to a low of $15.50. It has moved below all moving averages, meaning that bears remain in control for now.

On the positive side, the coin has formed a triple bottom pattern at $15.50 and a neckline at $36, which is about 115% above the current level.

Oscillators suggest that the token will likely rebound soon, with the Relative Strength Index and the MACD continuing rising. 

Therefore, the most likely AVAX price forecast is bullish, with the initial target being at $26.62, its highest level in May and July this year. A move below the support at $15 will invalidate the bullish forecast.