Avalanche has continued to climb to the highest regardless of market headwinds and bearish circumstances in the final 12 months.
Its market cap was slashed by roughly $2 billion in the final two weeks due to the bearish circumstances however it’s now making an attempt a comeback.
Avalanche managed to flip MATIC in 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 in the final 24 hours.
MATIC, alternatively, 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. But will we see extra worth circulate into the blockchain community now that the market is struggling to discover footing after final week’s crash?
Dancing on the assist line
Well, it’s right here to be famous that AVAX has been hovering above its assist line for the final 5 days.
The similar assist line is a part of its ascending vary via which it has been oscillating for 9 weeks now.
Quite a lot of uncertainty underscores AVAX’s present worth degree.
The uncertainty stems from the truth that the worth has retested the identical assist line a number of instances. Thus, the probability of assist weak point. On the opposite hand, the market is cautioued after the most recent draw back, therefore the potential for extra drawdown.
AVAX’s market sentiment is presently bettering in favor of the bulls regardless of the market uncertainty.
This is clear in the weighted sentiment metric on 21 August after beforehand dropping throughout final week’s bearish efficiency.
The Binance funding price additionally demonstrates a sentiment shift after its sharp bounce on 20 August.
Although the sentiment shift is presently leaning in favor of the bulls, AVAX’s worth motion remains to be below 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 circumstances will seemingly set off one other sell-off for AVAX. On the opposite hand, a bullish market final result could favor the upside.