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Can Avalanche [AVAX] climb further after this Subnet launch

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Can Avalanche [AVAX] climb further after this Subnet launch
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  • The first DEX Subnet launched on the Avalanche network.
  • AVAX’s direction was positive but it risked surpassing an overbought reversal.

According to CoinMarketCap, Avalanche [AVAX] increased 14.58% in the last 24 hours but besides that, there has been notable development with the project. Noteworthy to mention was the Dexalot Subnet launch on the Avalanche ecosystem.

Read Avalanche’s [AVAX] Price Prediction 2023-2024

Dexalot describes itself as a secure, fast, and low-cost Decentralized Exchange (DEX) built on the Avalanche ecosystem. Applauding the development, Avalanche mentioned that the Dexalot experience would be better for traders since it was on-chain and non-custodial.

Institutional involvement puts AVAX on the wheels

Besides that, Avalanche has enjoyed an array of partnerships recently.  The most notable one was the AWS collaboration per blockchain enterprise solutions. Regardless, other institutions seemed to be in tune with the Avalanche project.

In driving further adoption, the layer-one (L1) blockchain was able to entice the likes of the NFT marketplace, OpenSea, and e-commerce giant Ali Baba. Shopify was also not left out as all these happened in the last quarter of 2022.

However, the smart-contract Ethereum [ETH] rival seemed to have remained in the state of enjoying the rewards of the collaborations. In the last 30 days, AVAX increased 93%, making it far above other cryptocurrencies in terms of performance. But can the token climb further?

Torn in between a solid direction and a weak momentum

Indications from the four-hour chart showed that AVAX’s volatility was approaching extreme levels as revealed by the Bollinger Bands (BB). 

Moreso, the AVAX price was repeatedly hitting the upper bands of the BB. This interprets that AVAX might be overbought. If so, it would be no surprise since its 24-hour trading volume increased by 132%. 

But it seemed that AVAX was not ready to lay down its buying due to the signal from the Directional Movement Index (DMI). At the time of writing the positive DMI (green) was 35.43. 

AVAX price action

Source: TradingView

Realistic or not, here’s AVAX’s market cap in BTC’s terms

The opposite in red was down at 12.02. This means that AVAX had a solid prospect to continue in the green direction. Further, the Average Directional Index (ADX) which measures directional strength, supported the AVAX price increment.

If the ADX (yellow) were less than 25, then the green would have had the potential to reverse. But since it was 27.10, AVAX could sustain the current upturn.

But traders may need to be careful of the momentum as the Relative Strength Index (RSI) was 68.04, close to the overbought region.

In conclusion, the AVAX direction may be strong but the larger part of its sustenance may depend on the wider market sentiment.

 

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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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