Avalanche’s (AVAX) Bullish Run May Be Over
After a strong showing this week that saw the crypto coin Avalanche (AVAX) hit $37, it is down dramatically today.
The bullish run could be at an end after today’s showing. Avalanche achieved one of its highest marks for the year on Tuesday but is now down 3.79% for the day so far. That puts the AVAX price at $33.49 (AVAX/USD) and could be the start of a downward trend. Up until now, Avalanche had remained bullish for seven days.
What is causing the coin to turn around after doing so well? Market analysts point to the Federal Reserve’s stance on interest rate hikes. The Fed opted Wednesday to not cut any rates for March, which has helped the US dollar but is hurting the crypto market today.
Repercussions from Fed’s Decision
Market dynamics have been upset by the Fed’s decision, sending much of the crypto market into a downturn. This could be a short-lived bear trend, but it is too early to tell right now.
Interest rate cuts could come later on this year, if inflation worries settle down. Cryptocurrencies will be continually affected by the Fed’s decisions- an indirect result of the way the fiat currency and cryptocurrency markets connect with one another.
Avalanche could pull a turnaround very soon, but that is likely contingent on the wider crypto market’s performance. If the market recovered from this drop quickly, Avalanche may even be able to pick back up the bullish momentum that it had. Staying down too long in the bear trend will hurt its chances to get back up past the $40 level anytime soon.
For investors looking to cash in on the sudden change, they should be looking at today’s performance. If the coin rebounds before the end of the day, that could mean a strong performance throughout the rest of the week.
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