Why AVAX Price Stung Down Despite Increased Daily Activity

Avalanche (AVAX) is experiencing an increase in daily activity, with traders and investors keenly watching its progress. The crypto community had high hopes for the price of AVAX to cross the $14 mark, indicating a significant milestone in the asset’s growth.

However, the price failed to break the elusive barrier, despite growing interest and activity around the crypto. This unexpected development has led many to wonder about the underlying factors contributing to this stability in price movement.

What’s up with AVAX?

Surge in daily activity fails to propel AVAX

Current AVAX Price On coingeco at $13.26, showing a growth of 2.9% in the last 24 hours. However, despite this recent increase, the asset has also seen a decline of 0.9% over the past seven days.

 Source: Coingecko

Avalanche saw an impressive increase in daily activity, yet this achievement did not translate into the expected surge for AVAX to break the critical resistance level of $14.

according to a price report, AVAX has been experiencing a series of lower lows since mid-April, indicating a strong downtrend. During this period, the Relative Strength Index (RSI) remained below or slightly above the neutral position, indicating reduced buying pressure in the market.

AVAX 7-day price movement. Source: CoinMarketCap

Currently, the RSI is hovering around the neutral level, which indicates a more balanced market sentiment. However, the Money Flow Index (MFI) has crossed the mid-level point, indicating a reduction in recent buying pressure while notable trading volume remains.

Looking at the current technical indicators and market conditions, AVAX price is likely to consolidate in the range of $12 to $13.5 in the coming days.

Bitcoin’s Consolidation Above $30,000 Affects AVAX Price

Bitcoin’s prolonged consolidation above the $30,000 level has been instrumental in shaping broader cryptocurrency market sentiment, including the price movement of AVAX. As one of the leading digital assets, bitcoin often sets the tone for the overall market, affecting 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 stance among traders and investors. As uncertainty prevails in the market, many participants have adopted a wait-and-see approach, which has reduced trading activity and limited buying pressure for AVAX and other altcoins.

moreover, role of bitcoin As a major trading pair on various exchanges, its influence on the price dynamics of AVAX is further strengthened. Since traders often use BTC as a reference point for their altcoin trades, fluctuations in the price of bitcoin can create ripple effects throughout the cryptocurrency landscape, amplifying price movements in both positive and negative directions. Is.

Featured image from David Jackson/Park Record