Why Avalanche’s [AVAX] ‘alt medal’ doesn’t call for celebration yet

Avalanche’s claim as the fastest smart contracts platform may have contributed to its most recent achievement. According to AVAX Daily, a Twitter handle for Avalanche-related news, several AVAX-based projects are now among the top projects ranked by AltRank and LunarCrush, the market insights tracker. 

Top Avalanche Projects by AltRank$PSP @paraswap$AVAX @avalancheavax$ALBT @allianceblock$CRA @PlayCrabada$INSUR @InsurAce_io$FXS @fraxfinance$PLN @PollenDeFi$BIFI @beefyfinance$VSO @versofinance$FITFI @StepApp_#AVAX $AVAX pic.twitter.com/zWc6ZfuRn9

— AVAX Daily 🔺 (@AVAXDaily) September 28, 2022

Based on the update, ten AVAX projects, including ParaSwap, Avalanche itself, and Crabada, made it to the list. Despite the milestone, AVAX did not look like it was ready to fulfil investor expectations, however. 

Consider this – AVAX only appreciated by 1.40% over the last 24 hours. According to CoinMarketCap, the Proof-of-Stake (PoS) cryptocurrency was trading at $17.24, at press time.

Similarly, the 24-hour trading volume was down 42.06% to $202.51 million. However, there has been more to Avalanche than its declining volumes and unimpressive inclines.

Ready for celebrations?

Indications from the chart suggested that AVAX is not ready to cut down on its 88.06% decline from its All-Time High (ATH).

According to the four-hour chart, AVAX’s volatility seemed like it was about to explode at press time. This situation was implied by the Bollinger Bands (BB). If the altcoin manages to continue on its current path, it could offer AVAX traders and long-term investors an opportunity to profit.

Furthermore, the Relative Strength Index (RSI) revealed that AVAX was on the verge of sustaining good buying momentum as it made an effort to move north. At press time, the RSI stood at 45.24.

Besides the RSI and BB, AVAX seemed to be building on a climbing support level. While it held a support of $16.82 in September, the same had risen to $17.21 at press time. If such momentum sustains itself, AVAX could follow the price movements that took place between 26 and 27 September.

A quick glance at the metrics 

As per on-chain data, the positive and negative sentiments seemed to be in fierce competition for relevance at press time. According to Santiment, AVAX’s positive sentiment flashed a figure of 4.866 while the negative sentiment stood at 5.134.

Source: Santiment

An unclear sentiment led to a lack of investor urge to pump more liquidity to earn profits. Additionally, the possibility of an AVAX rally is now expected to dwindle considering this on-chain position. 

Furthermore, daily transactions on Avalanche’s C-chain have not been noteworthy. The C-chain is described as the constant smart contracts blockchain on the AVAX ecosystem, one that allows the creation of Ethereum [ETH]-based applications. 

According to SnowTrace, daily transactions that were once 1,100,404 had fallen to 159,137 at press time. Also, AVAX’s impact on the DeFi ecosystem has massively decreased too. 

Hence, it might not be the right time to expect unflinching community support for an AVAX price redemption arc. 

Source: SnowTrace