Avalanche (AVAX) has been experiencing a surge in daily activity, with traders and investors eagerly observing its progress. The crypto community had high hopes for the AVAX price to surpass the $14 mark, signifying a significant milestone in the asset’s growth.
However, despite the increased interest and activity surrounding the crypto, the price failed to breach the elusive barrier. This unexpected development has left many wondering about the underlying factors contributing to this stagnation in price movement.
What’s going on with AVAX?
Surge In Daily Activity Fails To Propel AVAX
The current AVAX price on CoinGecko stands at $13.26, showcasing a 2.9% rally over the last 24 hours. However, despite this recent uptick, the asset has also experienced a 0.9% decline in the past seven days.
Avalanche witnessed an impressive surge in daily activity, yet this accomplishment did not translate into the expected boost for AVAX to break through the critical $14 resistance level.
According to a price report, AVAX has been experiencing a series of lower lows since mid-April, signaling a strong downtrend. During this period, the Relative Strength Index (RSI) has remained below or just slightly above the neutral position, indicating muted buying pressure in the market.
AVAX 7-day price movement. Source: CoinMarketCap
Currently, the RSI hovers around the neutral level, signifying a more balanced market sentiment. However, the Money Flow Index (MFI) has crossed the mid-level point, suggesting a recent easing of buying pressure while notable trading volume remains.
Given the current technical indicators and market conditions, AVAX’s price is likely to consolidate within the range of $12 to $13.5 in the coming days.
Bitcoin’s Consolidation Above $30,000 Affects AVAX Price
Bitcoin’s prolonged consolidation above the $30,000 level has played a significant role in shaping the broader cryptocurrency market sentiment, including AVAX’s price movement. As one of the leading digital assets, Bitcoin often sets the tone for the overall market, impacting investor confidence and risk appetite.
AVAX market cap below the $5 billion mark. Chart: TradingView.com
The prolonged sideways movement of Bitcoin has resulted in a cautious approach among traders and investors. With uncertainty prevailing in the market, many participants have adopted a wait-and-see stance, leading to subdued trading activity and limited buying pressure for AVAX and other altcoins.
Moreover, Bitcoin’s role as a key trading pair on various exchanges further solidifies its influence on AVAX’s price dynamics. As traders often use BTC as a reference point for their altcoin trades, Bitcoin price fluctuations can trigger ripple effects across the entire cryptocurrency landscape, amplifying price movements in both positive and negative directions.
Featured image from David Jackson/Park Record