AVAX Experience Price Volatility with Bear Takeover
AVAX is trading at $15 today and continues its price volatility this week. The bears took over its price action on April 19, 2023, pushing it down to $18.99. Since then, the volatility of AVAX has brought it between $17 and $15 as bulls attempt to regain control.
Notably, its trading volume has increased by 34.13% in the last 24 hours despite price fluctuations in the market today. It also recorded gains in its value before dropping by over 3% again on May 9.
AVAX Price Analysis
AVAX has resumed a downward trend as bears and bulls compete for control of the market. It is trading below its 50-day and 200-day simple moving averages (SMA) with short and long-term bearish sentiments.
The Relative Strength Index (RSI) is at 35.84, close to the oversold level of 30 and declining. However, the direction of the RSI is sideways, suggesting that bears and bulls are evenly matched.
AVAX's Moving Average Convergence Divergence (MACD) is below its signal line and has a negative value, confirming the prevailing bearish trend in the market.
The current downward trend resembles the previous trend between February 22 and March 13, 2023. When AVAX's RSI moves into the oversold area, a retracement upward is possible.
AVAX encountered strong resistance at $17.67, sending the asset into a downward trend. Although trading occurred above the resistance level of $16.35 yesterday, bears pushed the price below the support level of $15.85.
As the support of $15.85 failed to hold, another decline in the asset's value to the support level of $14.40 is expected if bears persist. However, AVAX could recover if it enters the oversold area.
Recent Developments in Avalanche Could Promote Price Reversal
The digital technology and intelligence segment of the Alibaba Group, Alibaba Cloud, formed a partnership with Avalanche. The main goal of this partnership is to create a Cloudverse Launchpad. Cloudverse will help users launch and manage their hosted Metaverse areas on the Avalanche blockchain.
Additionally, MUA-DAO is the third organization in this innovative partnership. They are the service layer for implementation and integration in Metaverse adaptation. Consequently, Avalanche subnets can be adapted to various requirements in the blockchain.
The Avalanche network developers believe that this partnership will demystify the creation of Metaverse as it makes the process fast and seamless. Also, developers on the Cloudverse will receive support for visuals, meta-economy, events, interactions, and operations.
Most importantly, Alibaba Cloud and Avalanche previously partnered in December 2022 to provide tools and infrastructure for Asia-based users to launch network validators.
Alibaba Cloud has around 4 million customers and 10 million developers, a rising trend that could boost Avalanche's engagement and likely drive up AVAX's price.
Featured image from Binance and chart by TradingView.com
