The recent market crash hasn’t been easy on anyone. Investors across all cryptocurrencies have been equally spooked. However, Avalanche’s investors were particularly more frightened than investors of any other altcoin. This to the extent that they resorted to disappearing.
Avalanche goes cold
The impact of the May and June crashes has resulted in almost half of all of Avalanche’s active participants going missing.
According to the data made available by Avalanche itself, the presence of AVAX holders was already declining starting in May.
However, the drawdown was not as bad as expected, with Avalanche only noting a decline of fewer than 20k holders.
But come June, of the 619k active investors, only 358k have been active. Even with the remaining days of this month, the figure will not go much higher since the daily average active user count is at 48k.
Avalanche active users | Source: Avalanche
The lack of presence naturally impacted other on-chain statistics, and that, combined with the falling prices, resulted in only 15.6 million transactions conducted in the last 25 days.
The same figure in May exceeded 31 million, teetering on the edge of hitting 32 million.
Avalanche on-chain transactions | Source: Avalanche
Regardless, since AVAX is on the path of recovery now, there are chances of the investors returning to the network soon.
The divergence of the Bollinger Bands is clearly indicating a price swing is on the way, but with the bias of the indicator acting as support for the candlesticks, the price might end up moving upwards.
Avalanche price action | Source: TradingView – AMBCrypto
But it is still seeing some pullback since the entire crypto market is not in a bullish phase. This is also visible in the case of the Squeeze Momentum Indicator, which hasn’t exhibited one positive signal since the first week of April.
Being in a squeeze release during an uptrend is certainly helping the bearishness recede.
This situation could further improve since the altcoin shares a 0.96 correlation with the king coin, and as BTC rises, so would AVAX. Right now, trading at $21k, BTC is making progress, leaving room for AVAX to follow as well.
