AVAX Gains Despite Cryptocurrency Downturn
The AVAX token, native to the Avalanche blockchain, experienced a surge of over 7% in the last 24 hours, reaching a trading price of around $35.80. This increase is notable considering the overall cryptocurrency market capitalization has decreased by over 6%, currently standing at $1.6 trillion.
Crypto analysts are optimistic about AVAX’s prospects, with IntoTheBlock reporting a rise in large transactions for the token. CoinShares analyst Max Shannon also highlighted positive news regarding real-world asset tokenization testing using Avalanche.
Downside Pressure for AVAX
However, some analysts believe that AVAX may soon face downside pressure and that its current gains will be short-lived. YouHodler Chief of Markets Ruslan Lienkha suggests that AVAX tends to correlate with Bitcoin’s performance but with a delay, indicating it may follow Bitcoin’s downward trend.
Bitcoin Liquidations and Market Volatility
In the past 24 hours, Bitcoin and other major cryptocurrencies experienced a retracement of their recent gains, with BTC falling below $41,000. This downturn resulted in significant liquidations of long positions on centralized exchanges, totaling over $85 million in Bitcoin long positions.
The overall market volatility led to more than $500 million in liquidations across the entire cryptocurrency market, wiping out over $440 million worth of long positions and approximately $60 million in short positions.
Hot Take: AVAX Bucks the Trend
Despite the wider cryptocurrency market downturn, AVAX has managed to gain momentum and outperform other major altcoins. With positive indicators such as increased large transactions and real-world asset tokenization testing, AVAX has garnered attention from crypto analysts. However, there are concerns that AVAX’s gains may be short-lived, as it tends to follow Bitcoin’s performance with a delay. The market volatility and liquidations in Bitcoin and other cryptocurrencies further add to the uncertain landscape. It remains to be seen how AVAX will fare in the coming days.
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