Can Ecosystem-centric Developments Push AVAX’s Price?

Key Insights:

• The Avalanche ecosystem has been bustling with fundings and investments.
• AVAX price still moved in a rangebound trajectory.
• However, short-term gains fueled intraday trading volumes for the coin.

Ethereum-killers like Terra’s LUNA and Avalanche’s AVAX have had their moments of glory, rallying solo as the larger market consolidated. At press time, however, with the larger market heading towards oversold despite the recent short-term gains of bitcoin, an altcoin season doesn’t seem to be on most tokens’ cards.

Nonetheless, the ecosystem-centric growth for projects like Avalanche is notable. So, amid funding rounds, strategic investments, and high development activity, what will be AVAX’s fate in the near term?

Pumping Funds Into the Ecosystem

While AVAX didn’t make any remarkable moves this year on the price front, Avalanche’s ecosystem has been on a decent run. In early April, the Luna Foundation Guard (LFG) announced its intentions to buy $100 million worth of AVAX tokens from the Avalanche foundation.

Additionally, in April-mid, the Avalanche foundation raised $350 million in new financing at a $25 billion valuation. Furthermore, recently the firm also announced a strategic investment in Yeti Finance – a native decentralized borrowing mechanism.

Despite the recent developments, there hasn’t been any significant growth in the price of AVAX. The larger market’s consolidation and BTC’s price movement under the $40,000 mark overshadowed AVAX’s ecosystem growth.

Where is AVAX’s Price Headed?

AVAX has been trading between $65 and $80 for most of April. The coin’s price has maintained a rangebound trajectory since it broke the $74 support line.

At press time, AVAX traded at $69.56, noting a 1.32% rise on the daily chart and an 11.25% fall on the weekly. Nonetheless, with the asset’s price testing a crucial support line, buyers are expected to defend this level vigorously.

For now, with AVAX trading above $68, the same level can act as a strong support. If AVAX bulls can push prices up, the next significant resistance would be at the $75 level for the coin.

AVAX’s market capitalization at the time of writing stood at $18.6 billion, presenting an over 25% decline from the market capitalization of $25.90 recorded at the beginning of this month.

Additionally, the lower trade volumes for the token signified a lowered retail interest in the coin. Trade volumes had dropped from around $1.74 billion at the beginning of the month to about $489 million at writing.

So, can the AVAX buyers step in at the lower support level, or will the bearish action continue to drive prices down?

Looking at the price action at press time, AVAX’s price still looked rangebound with a lower sloping Relative Strength Index (RSI). RSI’s downtrend highlighted that sellers still dominated buyers, and the larger market sell-offs didn’t spare AVAX.

Nonetheless, a push from bulls in the short-term could push the 10th ranked token towards its higher resistance at $80 if the market conditions are ripe for gains.