Avex
+3.43%
It rose on Monday despite a slump in the broader cryptocurrency market.
The native token of the Avalanche blockchain has surged more than 7% in the past 24 hours and is currently trading at around $35.80. This upward trend comes despite a significant drop of more than 6% in the global cryptocurrency market capitalization, which currently stands at $1.6 trillion.
AVAX has far outperformed other major altcoins, with many cryptocurrency analysts at X remaining optimistic about the token’s prospects. According to the analysis of Into the Block“the is big Avex Transactions are on the rise, peaking last week with nearly 1,000 transactions worth more than $100,000. “This is not yet close to the levels of past bull markets, but it is a positive sign for the bulls.”
CoinShares analyst Max Shannon pointed out another factor for optimism. “Last November, JPMorgan and Apollo announced that Avalanche would be used to test real-world asset tokenization, which is likely to support price action,” Shannon told The Block.
This is The Block’s price chart.
downward pressure
However, one analyst believes the token may soon face downward pressure and its current gains may be short-lived. “We have seen that AVAX is correlated with major cryptocurrencies like Bitcoin, but reacts with some lag,” YouHodler head of markets Ruslan Lienkha told The Block. “So this time is no exception and we are finally seeing the token match Bitcoin’s dynamics.” “I believe we will follow suit,” he said.
Bitcoin and other major digital assets recovered their week-long gains over the past 24 hours, with BTC falling below the $41,000 mark. The recession led to the liquidation of a significant portion of long positions on central exchanges. Monday’s ‘long squeeze’ resulted in the liquidation of more than $85 million in long Bitcoin positions, according to The Block’s data dashboard.
Today’s volatility has resulted in over $500 million liquidated across the entire cryptocurrency market. According to CoinGlass data, more than $440 million in long positions were liquidated, while only about $60 million in short positions was liquidated.
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