AVAX is trading in the $15 price range today, continuing its week’s price volatility. The bears seized control of its price action from April 19, 2023, forcing it down to $18.99. Since then, AVAX’s volatility has placed it between $17 and $15 as the bulls seek to regain control.
Notably, its trading volume is up by 34.13% in the last 24 hours despite the price fluctuations in the market today. It also recorded price gains earlier today, May 9, before dipping again by over 3%.
AVAX Price Analysis
AVAX has resumed a downtrend as the bears and bulls compete to control the market. It is trading below its 50-day and 200-day Simple Moving Averages (SMA), with bearish sentiment in the short and long term.
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Also, the Relative Strength Indicator (RSI) is 35.84, close to the oversold region of 30 and bearish. However, the RSI’s direction is sideways, suggesting that the bears and bulls are even.
AVAX’s Moving Average Convergence/Divergence (MACD) is below its signal line and shows a negative value confirming the prevalent bearish trend in the market.
The current downtrend is similar to the previous trend between February 22 and March 13, 2023. If AVAX’s RSI moves to the oversold region of 30, a retracement to the upside is possible.
AVAX encountered stiff resistance at the $17.67 level, sending the asset into a downtrend. Despite trading above the $16.35 resistance level yesterday, the bears pushed its price below the $15.85 support level.
Since the $15.85 support could not hold, expect further decline for the asset to the $14.40 support if the bears persist. However, AVAX might rally if it enters into the oversold region.
Recent Developments In Avalanche Might Foster Price Reversal
The digital technology and intelligence arm of the Alibaba Group, Alibaba Cloud, formed a partnership with Avalanche. The main aim of this partnership is to create a Cloudverse Launchpad. Cloudverse will help users to launch and manage their Metaverse spaces hosted on the Avalanche blockchain.
Exclusive: @avax and @alibaba_cloud join forces to help businesses deploy metaverses on its chain
“It’s a great way to get access to 4M potential builders, and when they come through, there will be tons of transactions on the chain,” @John1wu said.https://t.co/Qbc1zyNS3Q
— Jacquelyn Melinek (@jacqmelinek) May 4, 2023
Also, MUA DAO is the third organization included in this innovative partnership. They are the service layer for implementation and integration on Metaverse customization. As a result, Avalanche Subnets can be customized to fit various needs on the blockchain.
The Avalanche network developers believe that this partnership will demystify the creation of Metaverse since it makes the process quick and seamless. Also, developers on the Cloudverse will receive support for visuals, meta-economics, events, interactions, and operations.
Notably, Alibaba Cloud and Avalanche partnered earlier in December 2022 to provide the tools and infrastructure for Asian-based users to launch network validators.
Alibaba Cloud has around 4 million customers and 10 million developers, increasing Avalanche’s exposure and likely boosting AVAX’s price.
Featured image from Binance and chart from Tradingview.com