Will AVAX Survive the Hits It Takes?
The 2022 crypto wild market left a deep mark on the Avalanche ecosystem. AVAX, Avalanche’s flagship, fell 89.5%, leaving many investors scratching their heads. However, the brand has seen some comebacks. According to CoinMarketCap, AVAX rose 3.78% in the last 24 hours and is trading at $11.53. This price increase is due to some risks that will play a role in the recovery of the Avalanche in 2023.
Development of the Chain
Although the past year has been a lot in terms of the value of the crypto market, the development continues to move forward. On December 30, Avalanche expanded its incentive program to promote dApp development in the Avalanche ecosystem.
December also saw Coinbase’s USDC integration which will bring more people into Avalanche and the crypto economy as a whole. Avaxholic, a popular Twitter account dedicated to environmental updates, recently tweeted about the current state of development in the system.
Re, a blockchain-based reward provider, launched with Avalanche. Re aims to showcase the reinsurance market, making blockchain technology an opportunity for companies entering the reinsurance market. This puts a lot of water in front of this connection with traditional money. As of this writing, the insurance market is expected to reach $1.3 trillion by 2031.
Partnerships with HoldStation, a SocialFi wallet provider, and Odos Protocol, which launched the DEX and Avalanche collections, have also played a major role in AVAX’s current position. Can AVAX pass this level?
Surprisingly, AVAX is not as closely related to Ethereum as compared to Bitcoin. This may present some challenges as the signal is testing the $11.66 price resistance level.
The king of crypto won last year, and BTC continues to move towards its price range while FTX falls. This price movement can be stopped as January is full of big indicators that will affect the broader financial market, especially AVAX.
“AVAX’s Future Depends on Federal Reserve’s Interest Rate Decision”
With BTC being linked to the S&P 500 and the Dow Jones Index, the disruption of the macro system will affect the king of crypto, dragging AVAX with it. This week will be very important for AVAX, as minutes of the federal government meeting on free trade and US non-farm payrolls will be released.
These will provide insight into the next steps for the US Federal Reserve regarding the inflation picture. If the Fed decides to raise interest rates again, AVAX could lose its current position.
However, at the time of writing, the symbol has already broken above the stop level of $11.66. Investors and traders should now focus on resistance at $12.10. Bulls still need to tread carefully because the market will react to large trends.
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