Avalanche (AVAX) is experiencing a flurry of daily activity, with traders and investors eagerly observing its progress. The crypto community had high hopes for the AVAX price to cross the $14 mark, marking a major milestone in the asset’s growth.
However, despite the increased interest and activity surrounding the crypto, the price failed to break through the elusive barrier. This unexpected development has many wondering about the underlying factors contributing to this stagnation in price movements.
What’s going on with AVAX?
Peak daily activity fails to propel AVAX
The current AVAX price on CoinGecko stands at $13.26, indicating a 2.9% increase over the past 24 hours. However, despite this recent uptick, the asset has also experienced a 0.9% decline over the past seven days.
Source: Coingecko
Avalanche witnessed an impressive increase in daily activity, but this performance failed to translate into the expected boost for AVAX to break through the critical $14 resistance level.
According to a price report, AVAX has experienced a series of lower lows since mid-April, indicating a strong downtrend. During this period, the Relative Strength Index (RSI) has remained below or slightly above neutral, indicating moderate buying pressure in the market.
AVAX 7-day price movement. Source: CoinMarketCap
Currently, the RSI is hovering around the neutral level, indicating more balanced market sentiment. However, the Money Flow Index (MFI) has passed the midpoint, indicating a recent easing in buying pressure, while remarkable trading volume remains.
Given the current technical indicators and market conditions, the price of AVAX is likely to consolidate within the $12 to $13.5 range in the coming days.
Bitcoin’s consolidation above $30,000 impacts AVAX price
Bitcoin’s long-term consolidation above the $30,000 level has been instrumental in shaping broader cryptocurrency market sentiment, including AVAX’s price move. As one of the leading digital assets, Bitcoin often sets the tone for the overall market, influencing investor confidence and risk appetite.
AVAX market cap below the $5 billion mark. Chart: TradingView.com
Bitcoin’s prolonged sideways movement has resulted in a cautious approach from traders and investors. With the prevailing uncertainty in the market, many participants have taken a wait and see approach, leading to subdued trading activity and limited buying pressure for AVAX and other altcoins.
Moreover, Bitcoin’s role as a major trading pair on several exchanges further strengthens its influence on AVAX’s price dynamics. Since traders often use BTC as a point of reference for their altcoin transactions, Bitcoin price fluctuations can create ripple effects throughout the cryptocurrency landscape, amplifying price movements in both positive and negative directions.
Featured image from David Jackson/Park Record
