Avalanche has continued to climb to the highest regardless of market headwinds and bearish situations within the final 12 months.
Its market cap was slashed by roughly $2 billion within the final two weeks as a result of bearish situations however it’s now making an attempt a comeback.
Avalanche managed to flip MATIC within the final 24 hours, incomes its place because the 14th largest cryptocurrency by market cap.
The AVAX token had a $6.6 billion market cap at press time after a 1.72% enhance within the final 24 hours.
MATIC, then again, was trailing behind with a market distinction of simply $42 million.
Avalanche’s market cap, on the time of writing, was nearer to its month-to-month low than its month-to-month excessive. However will we see extra worth circulate into the blockchain community now that the market is struggling to seek out footing after final week’s crash?
Dancing on the assist line
Nicely, it’s right here to be famous that AVAX has been hovering above its assist line for the final 5 days.
The identical assist line is a part of its ascending vary by way of which it has been oscillating for 9 weeks now.
A number of uncertainty underscores AVAX’s present worth stage.
The uncertainty stems from the truth that the value has retested the identical assist line a number of instances. Thus, the chance of assist weak point. Then again, the market is cautioued after the newest draw back, therefore the potential of extra drawdown.
AVAX’s market sentiment is presently enhancing in favor of the bulls regardless of the market uncertainty.
That is evident within the weighted sentiment metric on 21 August after beforehand dropping throughout final week’s bearish efficiency.
The Binance funding charge additionally demonstrates a sentiment shift after its sharp bounce on 20 August.
Though the sentiment shift is presently leaning in favor of the bulls, AVAX’s worth motion remains to be beneath the heavy affect of the prevailing bearish momentum.
This explains why its worth motion has not bounced again after retesting assist.
An extension of final week’s bearish situations will probably set off one other sell-off for AVAX. Then again, a bullish market end result might favor the upside.