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Assessing if AVAX will be able to maintain its uptrend in the short term

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AVAX recently outperformed several top cryptos by registering a hike of nearly 10% over 7 days. While the price surged, several interesting developments happened on the network, all of which might have played a role in the alt’s uptrend.

For instance, 45 million transactions were settled on Avalanche in August 2022 – A considerably high figure. 

A look at AVAX’s daily chart revealed that better days are to come for the altcoin soon. However, several metrics indicated that dark days could be ahead too.

For instance, at the time of writing, AVAX was trading at $20.44 with a market capitalization of $6,038,697,780. 

Efforts made by AVAX

Last week, AVAX’s C-Chain’s Daily Gas Usage hit an ATH of 461,891,881,112 – A positive indicator as it reflects the presence of more users on the platform. The DFK Chain turned out to be the major contributor to this massive hike in gas usage. 

Moreover, the entire ecosystem is also moving ahead drastically with several new partnerships and integrations, as suggested by Avalanche’s TVL Weekly Dashboard. For instance, Bubblemap partnered with Avalanche to provide a better Web3 experience to its users and FTX Japan recently listed AVAX on its website. 

On the back of all these updates, AVAX gained northbound momentum. The good news is that the pump was backed by large volume, which acted as a support for a further uptrend. 

However, while AVAX’s price rose on the charts, its development activity decreased drastically. This, by and large, is not a good signal for a blockchain. Along with developer’s activity, AVAX’s social volume also plunged, indicating lower interest from the community in the token.

Source: Santiment

Possible uptick soon?

Though a few metrics did not support a further surge, AVAX’s 4-hour chart suggested otherwise as several market indicators were in favor of AVAX. The Relative Strength Index (RSI) registered upward movement, indicating a price increase in the coming days. Moreover, the Exponential Moving Average (EMA) Ribbon also displayed a bullish crossover as the 20-day EMA flipped the 55-day EMA.

However, the CMF went down towards the neutral zone – A bearish sign. Though the MACD’s data indicated a bullish advantage, the situation might change soon as the red line was fast approaching the blue one, further reducing the chances of a price hike. 

Source: AVAX/USD, TradingView

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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