What is happening
A total of $300 million worth of cryptocurrency was liquidated this past week, causing a major decline on the market.
This might be due to massive sell-offs on financial markets as all the major indexes saw losses Wednesday, with the S&P 500 slid 2.31%. Overall, the biggest tech stocks lost more than $700 billion in valuation.
Ethereum ETFs also brought some disappointment to the crypto market.
Alex DovbnyaEthereum has dropped 12% from its recent highs, reaching $3,168. Since the recently released Ethereum ETFs have made institutional active selling possible, one of the main causes of this selling pressure is probably these new offerings.
Avalanche (AVAX) has plunged 10.7% on Wednesday.
Prior to that, it has extended its weekly gains to 17.03% to underscore its sustained positive twist on Sunday.
What is AVAX?
Avalanche (AVAX) is a blockchain platform designed to address the challenges previous blockchain technologies face, particularly in terms of scalability, speed and security.
It aims to be a powerful platform for decentralized applications (dApps), DeFi (decentralized finance) and other blockchain use cases. Avalanche utilizes a custom consensus mechanism called Snowman, which builds upon the proof-of-stake (PoS) concept.
Price analysis
The total supply of AVAX tokens is 720 million, with around 378.4 million in circulation.
The market cap is currently sitting at $13 billion, making it the 12th largest cryptocurrency at the moment.
Godfrey BenjaminAt press time, AVAX is traded at $28.96, having bounced back 4%. Avalanche's price faced rejection at the daily resistance of $32.66 earlier this week, extending the correction move for the fourth day in a row and retesting the trendline support at $26.34.
According to IntoTheBlock, active and new addresses on Avalanche have been rising. This is often acting as a key indicator of the price.
The Relative Strength Index (RSI) also supports this prediction. As observed, the RSI has fallen below the neutral line. If this decline continues, AVAX may experience full-blown bearish momentum, confirming the downswing.
Tomiwabold Olajide
Yuri Molchan