Avalanche [AVAX]: Is demand strong enough to reverse the downtrend

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice Avalanche dropped below the $40 support area as the wave of selling intensified in May. The downtrend might not be at an end, amidst macroeconomic fears around inflation and Bitcoin being a risk-on asset in

Timeline of Avalanche

The first two decades of the 21st century have seen remarkable technological advancement. This accelerated progress led to the emergence of countless new sectors and had a profound influence on every existing industry.

Terra's crash last week left many investors scratching their heads and counting losses. Other crypto projects and investment firms that partnered with Terra were also affected and are reporting major losses in their LUNA portfolios.

Emin Gun Sirer, the Avalanche founder compared the fall of the UST stablecoin and Terra's system to the hack of Mt.Gox which became one of the hottest crypto stores this year so let's read more today in our latest cryptocurrency news. Speaking on the matter of Luna and Terra was Emin Gun Sirer, the Avalanche

Avalanche is facing a testing day in the past 24 hours with the Ava Labs cryptocurrency facing massive volatility. The AVAX token initially went through a 16% dip before gaining momentum and rising above by 10%.

TerraUSD [UST] coming loose from its peg didn't just drag down the price of the stablecoin, but led to LUNA's market cap also diving and sent a shockwave of fear and anger through the communities participating in these projects. But it's not just a question of price, as investors speculated that Terra developers would migrate

Avalanche price analysis shows that AVAX closed the week at $28.92 and is currently down by 86.84 percent. The cryptocurrency has not been able to break out of the descending triangle it has been trading in for the past few days.The market capitalization for AVAX is currently at $7,739,747,117, and the trading volume is at.

AVAX's price has been hovering above a stable support level with no signs of a volatile move in sight. However, things could change as Bitcoin's price is starting to look bullish.

The performance of the global crypto market over the last day shows the coming back of it to the same pattern, as evident from Bitcoin's performance. It has continued to alternate between bullish and bearish waves.

Avalanche is up roughly 10% at its current price of $33.40 after bottoming out at $23.51 on Thursday. However, it has already registered some downside in the last few hours, confirming the lack of enough buying pressure to maintain the rally.

Avalanche (AVAX) slumped on Monday as traders feared that the Luna Foundation Guard (LFG) could dump its holdings of the token. AVAX is trading at $32.41, down 6% over the past 24 hours.