- Avalanche’s social dominance and mentions dropped, but the TVL held steady last week.
- The price of AVAX is down more than 3% in the past 24 hours and a few indicators have looked bearish.
Avalanche [AVAX] witnessed a massive drop in his social activity last week. This put the chain in a difficult spot. A decline in its popularity could be a result of its bearish price action.
Things got worse when checking volume, which increased as price fell. A look at the on-chain stats and daily chart gave a better understanding of what has been going on in the Avalanche ecosystem over the past seven days, causing these declines.
How many Worth 1,10,100 AVAX’s today
Avalanche’s popularity takes a hit
AVAX Daily, a popular Twitter handle that posts about the developments of the blockchain, revealed in a recent tweet about its social performance. According to the tweet, AVAX’s social mentions dropped by more than 94%.
Following the trend, AVAXThe organization’s social involvement and contributors have also fallen sharply in the past week. Adding to the misery, his social dominance also declined at a similar rate over the past seven days, reflecting a decline in his popularity.
🔺Avalanche Weekly Social Signals🔺
Most Influential Projects@MeritCircle_IO@wanchain_org@DeFiKingdoms@_VaporFi
Influencers of the week@cryptojack@AltCryptoGems@Trader_XO@SirKunt
Source: @LunarCrush#AVAX $AVAX #Avalanche pic.twitter.com/sXsyfCOjLU
— AVAX Daily 🔺 (@AVAXDaily) July 23, 2023
Interestingly, the blockchain managed to stabilize its TVL last week, as evidenced by DeFiLlama’s graphic. AVAX Dailys tweet also revealed that Struct Finance and Coinsquare were the top 2 TVL gains in the Avalanche ecosystem last week.
The drop in popularity of the blockchain was also noticed on Santiment’s chat as the social dominance chart remained low. However, weighted sentiment improved, which could be taken as a positive signal.
Source: Sentiment
Are investors having sleepless nights?
While social metrics fell, the token’s price action also remained bearish. From CoinMarketCapAVAX fell more than 6% and 3% in the last seven days and the last 24 hours, respectively.
At the time of writing, it was trading at $13.08 with a market cap of over $4 billion. The worse news was that as the price of the token plummeted, trading volume increased, which is a typical bearish signal.
Thanks to the price drop, the token’s 1-week price volatility also decreased. However, open interest also declined, giving hope for a trend reversal.
Source: Sentiment
Read Avalanche [AVAX] Price prediction 2023-24
although AVAX‘s open interest gave hope for better days, the market indicators revealed a different story. The Moving Average Convergence Divergence (MACD) showed a bearish crossover.
Avalanche’s Relative Strength Index (RSI) moved south, further increasing the likelihood of a sustained downtrend. However, the Chaikin Money Flow (CMF) was bullish as it rose slightly in recent days.
In addition, AVAX’s Money Flow Index (MFI) also tracked the CMF, which looked bullish for the token.
Source: TradingView