$AVAX
It’s climbed from a low of 8.28 to 8.66, up 3.85% in 24 hours. Trading volume is just over 100 million. Honestly, that’s nothing remarkable for a major coin, but the price action is pretty interesting: it topped out at 8.69, just three cents above the current price. That suggests selling pressure overhead isn’t too heavy—at least, nobody seems in a hurry to dump in the short term. I took a look at what’s been happening in U.S. stocks today: futures are down, Democrats are gaining ground in the midterm elections, and the market is repricing policy expectations. Those space stocks were hyped to the moon a while back and then came crashing down. Chamath’s comment that “prices are driven by investor expectations” was spot on. It’s much the same in crypto. AVAX has been steady over the past few days, not because its fundamentals suddenly got much stronger, but because it had already fallen so far that fewer people are willing to sell around the low $8 range. Even a little buying can lift the price. I don’t think it’s time to chase the rally just yet. If AVAX can hold above 8.5 and consolidate for a while, it wouldn’t hurt to wait until the direction of U.S. stocks becomes clearer before making a move. Trading volume of 100 million isn’t enough to sustain a major rally, but it also suggests that big money isn’t rushing for the exits. This looks more like a period of consolidation and base-building. The main thing to watch is whether U.S. stock futures continue to drag things down tonight. If sentiment toward risk assets sours, no major coin will be immune. What do you think?
It’s climbed from a low of 8.28 to 8.66, up 3.85% in 24 hours. Trading volume is just over 100 million. Honestly, that’s nothing remarkable for a major coin, but the price action is pretty interesting: it topped out at 8.69, just three cents above the current price. That suggests selling pressure overhead isn’t too heavy—at least, nobody seems in a hurry to dump in the short term. I took a look at what’s been happening in U.S. stocks today: futures are down, Democrats are gaining ground in the midterm elections, and the market is repricing policy expectations. Those space stocks were hyped to the moon a while back and then came crashing down. Chamath’s comment that “prices are driven by investor expectations” was spot on. It’s much the same in crypto. AVAX has been steady over the past few days, not because its fundamentals suddenly got much stronger, but because it had already fallen so far that fewer people are willing to sell around the low $8 range. Even a little buying can lift the price. I don’t think it’s time to chase the rally just yet. If AVAX can hold above 8.5 and consolidate for a while, it wouldn’t hurt to wait until the direction of U.S. stocks becomes clearer before making a move. Trading volume of 100 million isn’t enough to sustain a major rally, but it also suggests that big money isn’t rushing for the exits. This looks more like a period of consolidation and base-building. The main thing to watch is whether U.S. stock futures continue to drag things down tonight. If sentiment toward risk assets sours, no major coin will be immune. What do you think?
