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AVALANCHE HUGE BERAKOUT TDOAY – WHY !! AVALANCHE AVAX PRICE PREDICTION

Posted on May 29, 2022 by lbqvs


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Synopsis: The day brought an avalanche of bad news, for bulls as Ether fell below the psychological price, of $2,000 and was trading at $1,734.01 at press time, after losing around 9.94%, of its value in the past day. By press time, Avalanche [AVAX] had fallen to become the 15 biggest crypto, by market cap and was trading at $22.45, after losing 16.20% of its value in a day and sliding down by 24.92%, in the past week. AVAX’s fall certainly did not go unnoticed, as volumes surged slightly. Presumably, investors were using the opportunity, to buy the dip and score some AVAX at discount prices.

Moving on to development activity, one of Avalanche’s top-selling points, we can see this metric has been steadily increasing since 2021. From 20 May, however, there was an almost 2x spike in development activity.

However, this was pointed slightly downwards at press time. Even so, the rising metric is a reliable sign of developers’ faith in the project in spite of price falls. The recent changes in the market, have been tough on blockchain’s total value locked. But while some were able to minimize losses, Avalanche lost around 58.62% of its TV,L in the past month alone. At press time, the blockchain’s TVL was around $4.09 billion and its ranking was four.

That being said, Avalanche was seeing a dramatic increase, in social dominance, suggesting that there is an interested and engaged community paying attention to the project. This is a good sign for future growth. However, press time levels were still below those recorded in April, and March 2022. Finally, the Bollinger Bands for AVAX, showed that the two bands were narrowing, suggesting that volatility might be less in the future. Adding to that, the red candle was growing closer to the lower band, indicating AVAX could soon be seen as an oversold asset.

AVAX bears have maintained their assault this week, making it one of the top gainers among the top 20 cryptos by market cap. Its current downturn looks to be headed for a retest of its 12 May low, during which it bottomed out at $22.31.

AVAX traded at $26.43, at the time of writing after an 8.09% drop, in the last 24 hours. Its price is a notable premium, from its latest monthly or local low which might yield a retest or perhaps, even a new local low if AVAX bears are to extend their dominance It looks, like AVAX might be about to dip into the oversold zone once again courtesy, of its downside in the last few days. An interesting observation is that the price seems to be dropping despite accumulation signaled, by the uptick in its MFI indicator.

The Directional movement indicator confirms, that the bears are still in control but it looks like the momentum, is gradually decreasing. The supply held by whales with more than $5 million, bottomed out at 46.35% on 21 May. It then registered some uptick before peaking at $47.04% by 23 May. It has dropped slightly since. Thus, suggesting that some whales may have been testing the waters.

#avax #avalanche #crypto

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