Avalanche Notches Solid Mid-Week Bounce – Can AVAX Sustain The Positive Noise?

Christian Encila

2 years ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The native token of Avalanche, AVAX, registered a strong upswing this week, suggesting that the altcoin is gaining a lot of traction at its current prices.

As of this writing, AVAX is trading at $19.95, up 1.9% in the last seven days, data from Coingecko show, Friday.

The token’s market value grew by more than 4 percent in the preceding 24 hours and by more than 11 percent on Tuesday, a swift comeback from its bearish performance over the weekend.

Suggested Reading | CEL Token Price Plummets 50% As Celsius Goes Bankrupt

AVAX Token Enjoying Decent Accumulation

Trade volume increased by 73 percent during intraday trading. This indicates that the token is now being acquired and that buyers are actively trading AVAX.

The most recent increase in AVAX’s price happened after the stock retested its June support levels. This result is consistent with AVAX’s fluctuating price behavior since it broke out of its wedge shape.

Image: The Coin Republic

If this performance continues over the following two weeks, a minor uptick can be anticipated before resistance materializes.

The AVAX price has transformed the $18.26 barrier into a support base, together with the 50 and 200 Exponential Moving Averages. These factors are crucial for determining the future direction of Avalanche.

Avalanche Seen Retesting $21 Level

Provided the price of the token bounces off this level, investors can anticipate a 10% increase to retest the 200 four-hour moving average at $20.01. If buyers persist and overcome the aforementioned level, Avalanche will retest the $21.47 barrier.

AVAX reached a low of $16.37 on Wednesday before the bulls reclaimed the driver’s seat. The token traded around $18.20 on the day after facing some resistance because of sale pressure close to the 50 percent level of the relative strength index.

The token traded around $18.20 on the day after facing some resistance because of sale pressure close to the 50 percent level of the relative strength index. Since Wednesday, the Money Flow Index (MFI) for the altcoin has indicated substantial accumulation.

AVAX total market cap at $5.6 billion on the daily chart | Source: TradingView.com

Avalanche TVL In DeFi Increases

Meanwhile, Avalanche’s Total Value Locked for the second quarter decreased by almost 70% in USD terms quarter-over-quarter, although the amount of AVAX locked in DeFi grew.

Recent market volatility has not affected the network’s health, as network staking and decentralization have remained robust throughout the bear market.

AVAX provides many advantages on the on-chain side of things as well. For instance, its supply held by whales increased substantially from its monthly low of 43.55 percent on Thursday to its monthly high of 43.89 percent on Friday.

After experiencing remarkable growth beginning in 2021, the Avalanche network’s usage numbers stabilized and its financial performance improved in the first quarter of this year.

Several significant milestones contributed to the results of the first quarter, including the execution of growth plans, subnet development, and ecosystem expansion. The outlook for Q2 2022 is optimistic, and strong momentum is anticipated to continue.

Featured image from Fintechs.fi, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.