Avalanche Weathers The Storm – Can AVAX Hit $40 Again?

Christian Encila

1 year 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.

Avalanche (AVAX) is hardly an exception as the bitcoin market keeps negotiating a sea of uncertainty. A closer analysis reveals a market struggling with contradicting signals, a mix of cautious optimism and underlying anxiety, even while AVAX has shown some resilience relative to its altcoin counterparts.

Bullish Whispers Or A Mirage?

The direction of AVAX is still completely unknown. Although there are some encouraging indicators—such as relative outperformance and pockets of optimistic sentiment—they are offset by worrisome indicators including declining market control and notable decline in trading volume.

Avalanche: Resistance Levels Loom Large

Examining AVAX’s six-month chart exposes a rollercoaster journey marked by abrupt peaks and troughs. This volatility emphasises AVAX’s reliance on particular changes inside its ecosystem and its sensitivity to more general market trends.

AVAX has shown a trend of price swings mixed with similarly sharp corrections during the last six months. After a recent downturn from April’s highs, the altcoin appears to be grouping around the $38 mark right now.

Avalanche is currently trading at $37. Chart: TradingView

Should AVAX be able to sustain support around the pivotal $35 level, there is likelihood for a northward movement, particularly if a more general bull run materialises in the bitcoin market.

But major opposition looms around $48 and $53 – pricing points AVAX has frequently tested and failed to exceed in past months. A continuous breakout above these levels would indicate a major momentum change that would take AVAX towards the $80 or perhaps $100 barrier by the third quarter.

A Tale Of Two Markets: Where Do Traders Stand?

The trade scene around AVAX offers an interesting contradiction. With coinglass data showing a startling 60% drop in trading volume, market activity is clearly declining. A rather balanced long/short ratio across several platforms supports this even further by implying general uncertainty among traders about AVAX’s future.

Still, Binance, a well-known bitcoin exchange, shows some hopeful attitude. Here the long/short ratio is much greater, suggesting a perhaps more hopeful view among individual traders on this particular platform.

With a 40% rating on the Fear and Greed Index, the present situation of the AVAX market is marked by neutral mood, suggesting that investors have mixed opinions.

Losing Dominance, Waning Interest?

The challenges of AVAX transcend mere trading. Search interest is also falling, hence the altcoin appears to be releasing its hold on market share. This results in a lack of market control and maybe declining popular interest – not exactly the formula for success for a token hoping for notable increases.

Featured image from Summitpost, chart from TradingView

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.