AVAX is finally showing signs of recovery after recently breaking through the short-term support and almost retesting the June low. The announcement of a new avalanche could boost its potential rally by enabling more access to Bitcoin within the network.
This is the AMBCrypto price prediction for AVAX
Avalanche recently announced that users can now connect Bitcoin to the network through the Core app. The availability of Bitcoin, as well as its usefulness within the Avalanche ecosystem, has previously been limited, particularly due to the decline in DeFi activity and the lack of smart contracts.
Connect Bitcoin to Avalanche Using Tweet embedAnd unlock the potential with your BTC in the Avalanche DeFi ecosystem ✅ https://t.co/8S1vXWeQtw
– Avalanche 🔺 (avalancheavax) October 17 2022
Unlocks more cash for avalanche
One of the biggest benefits of the new bridge is that it will provide more liquidity in the form of Bitcoin. This means that an avalanche could be more beneficial if it overcomes previous limitations.
Higher liquidity means more benefits which in turn can lead to higher speed and volatility for AVAX. These features are very useful for AVAX traders and investors.
Unfortunately, AVAX’s volatility has been in a downtrend for the past four weeks. This made it less attractive to traders, and thus reduced volume.
Increased liquidity and network usage can increase AVAX’s long-term volatility. As for the near-term outlook, AVAX may be at the beginning of an upward relief.
News of a new bridge that enables BTC to be turned into the avalanche network may boost investor sentiment and spark more upside.
Sentiment-weighted and social dominance both saw significant gains over the past 48 hours. This activity may be related to the news of the bitcoin bridging, and if so, the market has responded positively.
AVAX is trading at $16.10 at press time, nearly 11% up from its lowest price point last week.
AVAX’s Pivot Pivot occurred after a retest of June’s support levels, although it managed to rally significantly above the 2022 low. The price decline also occurred before diving into the oversold territory of the RSI.
The bullish bounce of the 5-month support level confirms that investors are back buying in the same area. Unfortunately, this also means that investors are buying back near the perceived bottom. However, it is still too early to tell if AVAX is on track to deliver a strong bullish performance in the near term.
The cryptocurrency market has risen significantly since the beginning of this week and AVAX is among the coins that have seen some rally. General market conditions affect its ability to achieve a sustainable recovery.