Avalanche’s NFT sector registers growth, but can it help AVAX go up?
- AVAX’s metrics looked bearish detailing why AVAX was on a downtrend.
- However, growth was noted in AVAX’s NFT ecosystem as sales increased.
Avalanche’s [AVAX] performance on the price front was concerning for the investors, as it declined by more than 5% in the last 24 hours.
According to CoinMarketCap’s data, AVAX’s price registered a decline of 3% last week, and at the time of writing, it was trading at $19.86 with a market capitalization of over $6.2 billion.
This downtrend can be attributed to the current market conditions, which have restricted most of the cryptos from registering gains. However, a look at Avalanche’s on-chain metrics revealed that there was more to the story.
How much are 1,10,100 AVAX worth today?
These are the concerns
Santiment’s chart pointed out that AVAX’s volume decreased substantially, which by and large was a negative signal. The demand from the derivatives market also took a blow as the DyDx funding rate went down.
The crypto community’s confidence in the coin also seemed to have plummeted as its positive sentiment metric decreased.
The recent price decline was accompanied by an increase in AVAX’s 1-week price volatility, suggesting a further downtrend considering the rest of the metrics.
Moreover, DeFiLama’s data revealed that Avalanche’s Total Value Locked (TVL) registered a 24-hour decline of more than 2%.
Realistic or not, here’s AVAX’s market cap in BTC’s terms
Is a trend reversal viable?
Interestingly, even though the week was not good for investors, AVAX’s NFT space had things going for itself. AVAX Daily released Avalanche NFT weekly highlights, which pointed out the ecosystem’s growth.
As per the latest data, the NFT sales and sales volume increased by double digits in the last seven days.
🔺Avax NFT Weekly Highlights🔺
Sales: 8912#AVAX #Avalanche $AVAX #NFT #GameFi pic.twitter.com/9Rz2HyWkD2
— AVAX Daily 🔺 (@AVAXDaily) February 4, 2023
While SWARMS remained the most impressive NFT with 19 sales at an average price of $45.24 last week, the remaining NFTs had a volume smaller than 10 NFTs.
For several weeks in a row, Chilkn Roost and OG Odin held the top volume positions. Last week, Chad Doge Supers joined Chilkn Roost and OG ODIN on the list, indicating that the project was gaining traction with buyers.
Nonetheless, growth in the NFT space did not seem to be enough for AVAX to initiate a trend reversal, as the daily chart also painted a bearish picture.
AVAX’s Relative Strength Index (RSI) registered a downtick and was heading toward the neutral mark, which was bearish. The Money Flow Index (MFI) also chose to follow a similar route.
Moreover, AVAX’s Chaikin Money Flow (CMF) was resting below the neutral mark, further increasing the chances of a continued downtrend. However, the Exponential Moving Average (EMA) Ribbon remained bullish as the 20-day EMA was above the 55-day EMA.