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- The first DEX subnet is launched on the Avalanche network.
- AVAX’s direction is positive but risks beyond overbought reversals.
According to CoinMarketCap, Avalanche [AVAX] up 14.58% in the last 24 hours, but other than that, there have been important developments with the project. Of note is the launch of the Dexalot Subnet in the Avalanche ecosystem.
Our double chain foundation is set. The multi-chain future has begun.⛓️
That #Dexalot subnets, powered by @avalancheavax, here! It’s time to experience incredible speed, ultra-low fees, new incentives and transparency for yourself: https://t.co/wtCVailpgu
Volume UP🔊 pic.twitter.com/YazXhv0jDZ
— Dexalot🔺(🚫🤖) (@dexalotcom) February 1, 2023
Read Avalanches [AVAX] Price Predictions 2023-2024
Dexalot describes itself as a secure, fast and inexpensive Decentralized Exchange (DEX) built on top of the Avalanche ecosystem. Welcoming the developments, Avalanche mentioned that the Dexalot experience will be better for merchants as it is on-chain and non-custodial.
Institutional involvement put AVAX on wheels
Additionally, Avalanche has enjoyed a series of partnerships recently. The most prominent is AWS Collaboration per enterprise blockchain solutions. Regardless, other institutions appear to be aligned with the Avalanche project.
In further driving adoption, layer-one (L1) blockchains were able to captivate the likes of NFT marketplaces, OpenSea, and e-commerce giant Ali Baba. Shopify is also not being left behind as all of this is happening in last quarter year 2022.
However, smart contracts Ethereum [ETH] its rivals appear to remain in a state of enjoying the rewards of the collaboration. In the last 30 days, AVAX iincrease 93%, making it far above other cryptocurrencies in terms of performance. But can the token go further up?
Torn between firm direction and weak momentum
Indications on the four-hour chart show that AVAX’s volatility is approaching the extreme levels expressed by Bollinger Bands (BB).
Moreover, the AVAX price repeatedly touched the upper band of the BB. This means that AVAX may be overbought. If so, it’s no surprise as its 24-hour trading volume increased by 132%.
However, it seems that AVAX is not yet ready to reduce its purchases due to signals from the Directional Movement Index (DMI). At the time of writing, a positive DMI (green) is 35.43.
Source: TradingView
Realistic or not, this is it AVAX market cap in BTC terms
The opposite in red is down at 12.02. That is, AVAX has strong prospects to continue in a green direction. Furthermore, the Average Directional Index (ADX), which measures directional strength, supports the increase in the price of AVAX.
If ADX (yellow) is less than 25, then green has the potential to reverse. But since 27.10, AVAX was able to maintain current gains.
But traders may need to be careful with momentum as the Relative Strength Index (RSI) is at 68.04, close to overbought territory.
In conclusion, AVAX’s direction may be strong but much of its survival may depend on the broader market sentiment.
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