AVAX, the native currency of the Avalanche blockchain, is trading at new 2023 lows at the time of writing on August 26. Trading at $10, the coin is down 55% from 2023 highs and roughly 25% alone in August 2023. At this pace, AVAX has not only broken mid-June 2023 lows but could break below the critical June 2021 support.
AVAX Is Sinking
A look at the daily candlestick arrangement in August shows that sellers have been unwavering and firm despite the general optimism amongst supporters. Of note, it is clear that the selling momentum has been strong. AVAX bear bars have been banding along the lower BB, meaning sellers have been unloading faster. At the same time, the divergence of the middle BB from the upper and lower BB suggests that AVAX prices have been volatile. This can be illustrated by the rapid contraction, especially in the second half of August when AVAX has shaved off over 20% of its value.
The sell-off also comes amid a drop in trading activity and general liquidity, as volume indicators show in the daily chart. Comparing the current activity with those of early to mid-July 2023, it is evident that trading volumes have rapidly contracted. This drop may point to general apprehension as traders steer clear, considering the recent decline in valuation.
Typically, trading volumes are an indicator of interest, and in times of expanding prices, like in early July, AVAX trading volumes rose in tandem. The higher the trading volumes, the more liquid the token is since traders are more engaged and confident of the project’s prospects.
Avalanche Vista And New Partnerships
AVAX remains under pressure despite Avalanche Foundation partnering with Legitimate Technology, a web3 company, days after the foundation launched the “Avalanche Vista” program. The foundation aims to purchase real-world assets (RWAs) of up to $50 million minted on Avalanche. Following this, Legitimate joined forces with Puma and Roc Nation to bring the worlds of fashion and music on-chain.
In partnership, Legitimate has now released the “Evolution of the Mixtape” sneaker collection to celebrate what they say is “hip-hop’s 50th anniversary.” The collection will include three unique sneaker models, each embedded with a near-field communication (NFC) chip for “owners to access a digital portal showcasing weekly mixtapes and behind-the-scenes content from Roc Nation artists.” Each NFC chip is linked to an immutable digital object on Avalanche for easy provenance. All these digitized products can be redeemed through Legitimate’s LGT protocol.
Featured image from Canva, chart from TradingView
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