Avalanche, (AVAX), is trailing Bitcoin (BTC) in plunge. However, its stock price also dropped 6% within the past 24 hours.
On the brighter side, AVAX/USD is looking solid and rising following yesterday’s plunge which suggests a correction before a potential uptrend.
AVAX currently trades at $25.10 and has risen 7 percent over the past seven days according to data from Coingecko, Friday. People should also be looking out for the $25 zone.
There is high likelihood of a bull market if the price can return to or exceed that level.
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Is AVAX going to continue its retracement or will it maintain an upbeat?
A week earlier, AVAX had seen a rebound from its wedge formation. After a consistent rally, hints of a breakout were also made.
Avalanche now managed to break above the resistance line with a powerful breakout. Although it was quite strong, the upside was very limited after its recent pullback.
Although it reached $26.30 for its weekly peak, AVAX managed to retrace a little showing current market conditions. The question is now whether AVAX will continue the retracement of its weekly high at $26.30 or go all-in on its upside.
AVAX has recently broken out, which is positive. It indicates that the price has passed a crucial restriction point. AVAX reversed right after MFI intercepted distribution zone.
The crypto market saw an intensification of selling pressure over the past few days, which allowed the bulls to have some breathing room after the latest run. They were unable to move higher due to this.
AVAX Total Market Cap at $7.05B on Daily Chart | Source: TradingView.com
Current retracement reveals the HODLing activities of most AVAX holders, which could indicate a move towards a bullish recovery following its slump in June.
AVAX continues to gain strength due to the aggressive expansion of its network. Avalance maintained strong development activity in July. This encourages AVAX’s flow and the ability to keep a sharp price action, despite any pullbacks.
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AVAX is growing exponentially
Avalanche has had a great month of July, especially with the phenomenal increase in NFT trading volume.
NFT volumes have experienced an exponential increase in recent weeks, which has contributed to the higher demand for AVAX.
A good sign that market sentiment favors bulls is the lack of major sell-offs. AVAX is very optimistic, especially considering its immense utility power and energy efficiency as well as massive growth.
Featured Image from The Daily Hodl. Chart by TradingView.com