Some cryptocurrencies, including Avalanche (AVAX), saw modest gains even as the overall market suffered from a prolonged downturn.
To date, has gone up from 120.11 million to 123.7 million, an increase of approximately 3% as of press time. AVAX Daily, a Twitter account that monitors the Avalanche protocol, also posted this.
An increase of 270,611,568 AVAX was reported in the latest update for TVL. The same was also supported by a chart created by DeFiLlama (chart below).
It’s good that AVAX is making progress, but is it safe from external market factors that could set it back even further?
At -0.17, Chaikin’s money flow indicator likewise demonstrates significant bearishness. This demonstrates that bears have total market control. At -87.56, the commodities channel index demonstrates strong bearishness.
Strong correlations exist with the struggling crypto market leaders. At 0.99 for Bitcoin and 0.98 for Ethereum, additional price declines in both cryptocurrencies could have disastrous effects on AVAX.
Good News And Not So Good News
Since Binance’s funding rates increased, the AVAX has been seeing a positive trend. The relative strength index (RSI) and the stochastic relative strength index (Stoch RSI) values that CryptoQuant has been using indicate that AVAX is currently oversold. Investors and traders want to see these kinds of signs since they’re positive. However, there is always a dark side to every day, and no matter how bright the day may have begun, it will inevitably end in darkness.
Avalanche Subnet Weekly StatsTotal Subnets: 29
Overview🧵👇 — AVAX Daily 🔺 (@AVAXDaily)
Total Blockchains: 21
Total Validators: 1305
Total Stake Amount: 270,611,568 AVAX
Keeping Track Of Price Movements
AVAX investors and traders can anticipate further weakness in the AVAX market in light of the aforementioned factors and the market’s already robust downward trend. The price movement of BTC and ETH may also influence the price movement of AVAX, thus investors and traders should keep a close eye on them. Assuming Bitcoin and Ethereum will continue to decline, a short position against the bear market is tempting at the current market price. But if the RSI trend reversal materializes, the $14 level will be an immediate target for bulls. Anything higher than that could result in a crunch zone in the Bollinger band, which could push the price down.
AVAX total market cap at $3.6 billion on the weekend chart | Featured image from The Daily Hodl, Chart:
