There are many twists and turns currently for the Avalanche ecosystem. On April 7, the Luna Guard Foundation had announced its intention to buy $100 million in AVAX tokens from the Avalanche foundation. Leading blockchain developer Avalanche announced on April 14 that it is raising $350 million at a valuation of $5.25 billion.
Additionally, on April 23, the Avalanche Foundation announced a strategic investment in Yeti Finance, its new decentralized borrowing protocol. Yeti Finance’s TVL reached $850 million in the week after launch. In one week, the protocol generated 1.86 million in revenue from transaction fees.
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AVAX technical analysis – it barely reacts and breaks a downtrend line
Despite all these developments this month, AVAX does not seem to have received a favorable response. Its market cap is $19.4 billion. This is down 25% from the start of the month, when it was around $25.90.
Similarly, the token’s trading volume fell by more than 80%, from $1.74 billion at the start of the month to $341.51 million.
However, AVAX’s social dominance appears to have increased by 3%, according to statistics from Santiment.
L’AVAX/USD drew a line bullish trend since September 2021. After 2 rebounds on this support, the 3rd was done with low volumes. The Sunday candle was relatively small. This is a signal that the trendline may not hold the price this time, and if it is broken, the former resistance at $60, turned support, will be the next target for sellers.
Alm Maye has been a trader and analyst since 2013. He is an expert in equity markets, Forex and cryptocurrencies. He is the creator of Almvest.com and Imveste.com, two sites dedicated to personal finance. He participates in the development of feature articles on specialized sites such as Actions-boursieres.fr, as well as the international network of Finixio.com.