Avalanche (AVAX): Despite these developments, bulls face resistance

  • Avalanche development activity skyrocketed as several milestones and partnerships were announced this week.
  • AVAX tries to keep the bears at bay despite the slight drop from the resistance range.

The Avalanche network (AVAX) has maintained robust development activity over the past seven days, even as market volatility has subsided. Here’s a look at how the network fared this week in terms of development activity.

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Avalanche’s social dominance has just hit a new weekly high over the last 24 hours, confirming that the network is getting a lot of attention. Its development activity metric has also seen sharp growth over the last seven days, confirming that developers are busy.

Source: Sancimento

But what has driven this development activity and social volume? There have been several announcements so far this week that are likely behind the above results. Among these factors is a recap of how demand for native Bitcoin (BTC) grew on the Avalanche network in June 2022.

Reports reveal that demand for native BTC on Avalanche has seen positive growth since its launch, starting from approximately 21 BTC to over 7,000 BTC in less than a year, even during the bear market.

Avalanche advances on the WEB3 front

Additionally, Avalanche has teamed up with Chinese internet giant Tencent to pursue opportunities on WEB3. According to the announcement, Avalanche will provide Tencent developers with access to subnets and rapid node development.

Avalanche also rolled out its new developer framework called the HyperSDK this week. This will make it easier for developers to quickly develop custom virtual machines, reducing the complexities of development processes.

How did AVAX respond?

AVAX has held up very well in light of these advances. However, the bulls struggled to break above the $21 price level after encountering resistance.

AVAX price action

Source: TradingView

AVAX price action at press time was characterized by lower volatility. Despite this, its trend has shown relative strength above the 50% level of the RSI. Its MFI is down slightly from this week’s high, confirming some outflows.

How much are 1,10,100 AVAXs worth today?

However, it has remained firmly above the 60 range, confirming a weak bearish result so far. This result also reflects bearish sentiment since mid-February.

Avalanche Weighted Sentiment AVAX

Source: Sancimento

Bearish expectations, as seen in weighted sentiment, failed to produce a sizable move. Instead, the same metric has changed and now indicates that bullish sentiment is brewing.

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