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AVAX gone wrong – Why is it suddenly out of the top 10?

2min Read

AVAX is now a shadow of its former self, but predictions favor a step forward.

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  • AVAX’s price fell, with its market cap dropping below $19 billion
  • Signals from AMBCrypto’s analysis revealed that the price might recover soon

After trying so hard not to fall out of the group, Avalanche [AVAX] dropped out of the top-10 cryptocurrencies by market cap. At the time of writing, AVAX’s market cap had fallen to $18.31 billion.

This value was $5 billion shy of Toncoin’s [TON] own market cap, which was largely responsible for the change in position. In fact, in the last 24 hours alone, AVAX depreciated by 3.93%. TON, on the other hand, climbed by 15.45% as it moved to 9th on the standings.

AVAX’s latest performance has been contrary to how it did some months back. Back then, AVAX was one of the market’s top performers, alongside Solana [SOL]. Now that the tides have changed, there are chances that AVAX could continue dropping down the chart. But, will it?

Frail AVAX ready to bounce

AMBCrypto looked at the possibility by considering the volume first. Volume measures buying and selling and is an indicator of interest in a token.

According to Santiment, AVAX’s volume was nothing compared to what it was on 19 March. At that time, the volume was about $3.42 billion. At press time, however, the same metric was a little over $400 million.

AVAX's price and decreasing volume

Source: Santiment

The decline in volume was proof of decreasing interest in the token. However, the price of the token might bounce considering the trend underlined by the price. Should the volume continue to fall like the price, the downtrend might become weak, Ergo, the price of AVAX might rebound on the charts.

Not everyone is confident

Evidence of this perception was highlighted by the Weighted Sentiment. At the time of writing, the Weighted Sentiment was -0.231, indicating that most comments about AVAX were pessimistic. Despite this, the price of the cryptocurrency could bounce if the sentiment reading drops lower than the one mentioned above.

Another metric AMBCrypto looked at was the Funding Rate. Funding Rate is the cost of holding an open position in the derivatives market.

At press time, funding was positive, indicating that the perp price was trading meaningfully above the spot price. This also means that it has become more expensive for longs to keep their positions open.

AVAX's price and funding rate showing a bearish prediction

Source: Santiment

From a price point, the increasing Funding Rate as AVAX’s price trades lower meant longs are aggressive. However, the issue with this was that they were not being rewarded for it.

Is your portfolio green? Check the AVAX Profit Calculator

For the price, this trend is potentially bearish. Should the position hold for the next few days, the price of AVAX might decline, and the market cap could fall even more.


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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