AVAX Prices on Thin Ice –Snowflakes or Hailstorms Further?

• GMX switches to Arbitrum from Avalanche.
• Avalanche Summit 2 and DeFi games may create support for falling prices.
• AVAX prices have fallen by more than 16% in the past 7 days.

According to recent reports, GMX has moved the majority of its activities from Avalanche to Arbitrum. Many brows were raised, as they questioned the impact of the move on Avalanche. GMX, at present, is giant by market cap and out does all its competitors when viewed on the basis of TVL. Avalanche, with an aim to provide the falling prices a cushion, came up with several optimizers. It took to Twitter to mention about the Avalanche Summit 2 which is planned to be held anytime soon. 

Another unveiling revealed Defi Kingdoms, a Defi game, will deploy Avalanche to integrate finance, technology and gaming. In the game, everything from heroes to other items are tokenized and can be exchanged for real-world value. One such integration that sent AVAX skyrocketing, was the one between AWS and Ava Labs. After the AWS deal with Ava Labs, AWS Web3 is at an inflection point.

The AVAX prices saw a fall by about 17% in the past few days and lost more than 9% in the intraday session. The volume, due to precise dip, has seen a selling pressure among the investors. The downticked OBV suggests it to be not an ideal situation for AVAX. The EMA ribbon floats below the price movements, except the 20-EMA, being formed above all. The falling prices can find support near $16.00.

The CMF slipped below the baseline to suggest the conditions to be negative and indicate bears. The MACD records tall sellers bars as the lines witness a negative cross. The RSI falls to find a spot near the 50-mark to show buyers weakening and sellers gaining dominance. 

The smaller time frame shows a falling trend for the AVAX prices. The CMF remains below the zero-mark and reflects a bearish trend. The MACD records ascending sellers histograms for the prevailing pressure. The RSI falls to the oversold zone and mirrors investors’ emotions. 

Conclusion

Despite the negative growth in the past few days, AVAXhas managed to form a strong support near $16.00 and the network is working to correct the wrong-done to bring back the bulls. The holders can rely upon the support near $16.00 to buy the dip.

Technical levels

Support levels: $16.00 and $12.00

Resistance levels: $23.75 and $26.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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