The market will continue to be very noisy, and I still do not trust it enough to start buying it.
Avalanche rallied a bit during the day on Thursday, as we are above the $17 level again. Getting 7% sounds impressive, but at the end of the day, Avalanche has absolutely cratered, living up to its name over the last year or so. The market will continue to be very noisy, and I still do not trust this market enough to start buying it.
The 50 Day EMA is sitting at the $30 level and dropping, so therefore I think that is an indicator that you need to pay close attention to. This is an area that will be important, assuming that we can even get there. After all, Avalanche would have to almost double to threaten that area. Avalanche continues to look very weak, and it’s likely that we will continue to see downward pressure. Quite frankly, I do not think that we have seen the last of the selling, and you need to keep an eye on the bigger and more important crypto markets such as Bitcoin and Ethereum, because as long as they struggle, smaller ones like Avalanche will most certainly do the same.
Now that we are entering into “crypto winter”, we need to start asking questions about ecosystems and whether or not they are going to exist in a few years. This is much like 1999 when a lot of technology stocks disappeared because they had not produced any type of profits. There was a point where people would buy anything with a “.com” attached to the name, and that is essentially what crypto has just seen. Because of this, people will in the future start to ask questions about whether or not the project is viable, or perhaps more importantly: whether developers are finding any real use for an ecosystem.
Unfortunately for crypto, there has been no real widescale adoption of it, although there may be in the future. That being said, it’s very likely that we will continue to see some of the weaker markets get flushed, perhaps even this one. The reality is that Avalanche is yet another market that may find itself disappearing, or perhaps thriving down the road. We need to see some “killer app” on the Avalanche platform for it to be viable. Otherwise, it’s a “cell on the rallies” type of situation.