Avalanche: Is it time to start investing in AVAX? - Explore more info before start.
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Recent AVAX situation
AVAX has started the month down, which is not surprising considering the possibility of a 34.5% rise from recent highs from October lows. This is in stark contrast to a long bullish outlook. term of AVAX, which is driven by healthy growth.
An example of favorable growth is Avalanche's increasing focus on being the backbone of business growth. This move opens up the potential for long-term growth through the Avalanche subnet.
Well, this was the subject of a recent Avalanche discussion on Twitter Spaces.
However, that is still not enough to stop the short-term bears from doing their thing. AVAX's latest performance heralds the start of a sell-off, possibly driven by short-term profit-taking following the October rally.
At press time, AVAX is trading at $18.2, down about 8% from its late-October peak of $19.85.
Its recent retracement is just below the overbought zone. Its money flow indicator has been steady for the past two days, so the bulls are out of breath.
However, at press time, the same indicator has yet to find a downward trajectory, which could indicate lower selling pressure.
AVAX bearish trend prevails
From the above comments, AVAX may have some limitations. If it maintains its current trajectory, investors should find some support near $16.9.
This is because the same price range means it will interact with the 50-day moving average, which often acts as a psychological axis.
AVAX's return potential may also depend on its ability to achieve healthy levels of network utility.
His NFT data shows he sees more utility in the NFT market. In fact, both the total number of NFT transactions and the total number of NFT transactions have increased over the past three weeks.
While these observations may reassure investors, it is possible that other factors are negating the increase in sentiment.
For example, Avalanche development activity has plummeted over the past two days. Investors may take this as a sign that this is not yet a good time to buy, reinforcing the bearish results.
The same applies to the demand for AVAX in the derivatives market. Both Binance and FTX funding rates have shown some weakness over the past two days. This suggests less demand for AVAX derivatives, especially after the rally in late October.
The aforementioned information provides a glimpse of potential results in the coming days. However, it does not necessarily guarantee any price direction.
Nov 03, 2022