Why is Avalanche (AVAX) token showing bullish momentum?

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Why is Avalanche (AVAX) token showing bullish momentum?

 Why is Avalanche (AVAX) token showing bullish momentum?
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Highlights

  • Avalanche (AVAX), the fastest smart contracts platform in the blockchain industry on Wednesday, is among the top 20 cryptos that are enjoying a brilliant Wednesday session.
  • From Avalanche’s perspective, the 11th ranked token, showed a slight rally of 10% in the past 24 hours.

Avalanche (AVAX) is one of the fastest growing smart contract platforms which has had investors gripped on for some weeks now. It one of the cryptos amongst the top 20, which is enjoying a brilliant Wednesday session.

The fastest and eco-friendly blockchain network has had a terrible run in the past seven days witnessing losses of up to 20%. Wednesday saw a glimmer of hope as the overall crypto market looked up with a slight rise of 1.03%. From Avalanche’s perspective, the 11th ranked token showed a slight rally of 10% in the past 24 hours with a volume of US$743,460,024 in the same period.

Also read: Can SparkPoint (SRK) cryptos' impressive rally woo investors?

The rally seems to be coming on the back of its tie-up with AscendEX, a global trading platform, looking to embrace Avalanche's smart contracts platform for its operations. AVAX largely due to its faster and congestion-free network offers viable solutions to many listed tokens on its network. For AscendEX, the Pollen, its native token, will be first to be operating on Avalanche platform, and this could prove to be a critical development to growth of the trading platform in 2022.

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The rally has definitely helped AVAX token to stop the slide for the moment. The slide, which started on 2 January, was at one point threatening its performance. If it would have continued, it would have killed all the momentum that the altcoins managed in 2021.

Also read: Will Moonbeam rally on opening day of KuCoin listing?

In fact, if one was to look at the chart, the RSI (relative strength index) indicated at the worm, which at one point had sunk as low as 27.93 is now making has made its way up to 45.55, and it could well be looking to close the gap between the gains and losses. Having said that, the investors would be hoping that it can now climb out of this hole and at least regain its old strength, which was well over 80 marks.

Also read: Will Decentraland (Mana) crypto rise again after prolonged bearish phase?

Even the Moving Average Convergence Divergence (MACD) shows that the trend line (in blue) signal line is closing the gap with the signal line, represented by the red histogram, indicating that it has managed to gain some grounds. While the price may have made some moment upwards, volume despite its gain is still lacking momentum and is down by 22%.

What’s next?

Going forward, the supporters would be hoping that the momentum comes back to AVAX and could kick on from here. Having said that, the experts are not ready to call AVAX’s run bullish just yet. It is a significant thing for a token that had enjoyed its all-time high of US$146.22 on 22 November 2021 and another rally could see them achieving the same, if not surpass it. But experts feel this is a positive movement and the token’s performance this week will determine the future trend of the token.

At the same time, the experts are also hoping that other cryptos can also show a positive movement that could be beneficial for the overall crypto market, which seems to be showing bearish movements due to inflation fears in various US and European markets.

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