Avalanche will [AVAX] 2023 owners start on a bullish note?

  • AVAX is currently trading at a one-month low.
  • Sales intensified.
  • Avalanche developers have released Banff 5 to enable easy communication between subnets in the network.

With less than a week left until the new trading year, the Avalanche [AVAX] It started a new downward cycle on December 16th to trade at a 30-day low at press time.

AVAX is trading for $11.74 at the time of writing, according to data from CoinMarketCap. With 2020 ranking as one of the most bearish years in the short history of cryptocurrency, AVAX has fallen in value by 90% over a 12-month period.

How many AVAX can you get for $1?

With no respite offered to holders as we prepare to close out the 2022 trading year, readings on the daily chart indicate that AVAX investors could face further losses in 2023.

On December 16, AVAX bears started a bearish cycle as a continuous decrease in buying pressure in the market forced the MACD line to cross the trend line in a downtrend. This immediately gave sellers control of the market and the price of AVAX has since fallen by 16%.

AVAX directional movement indicator position confirmed the downside as both ADX (yellow) and -DI (red) were above the 20 mark. The strength of the sellers at 29.80 was very strong as the strength of the buyers (may not be called) in green) at 15.41 in the near term.

With a continued decline in buying momentum and a subsequent rise in selling pressure, major indicators such as the Relative Strength Index (RSI) and Money Flow Index (MFI) have held below their neutral zones. At the time of writing, the RSI is at 38.93. Similarly, in a downtrend, AVAX Microfinance was 48.81.

Moreover, since the beginning of the new downward cycle, the size of AVAX’s balance sheet has remained unchanged, indicating that there is no significant accumulation pressure. The dynamic line (green) of Chaikin’s money flow (CMF) also fell below the center line to return a negative value of -0.03 at the time of publication.

Source: TradingView

Read Avalanches [AVAX] Price forecast for 2023-24

Avalanche Banff 5 upgrade

Meanwhile, on December 22, Avalanche developers announced the release of Banff 5, the final update for AvalancheGo.

According to Avalanche, with Banff 5, Avalanche introduced Warp Messaging (AWM), which allows subnets (Avalanche-based blockchains) to communicate with each other.

Before the upgrade, it was difficult for these subnets to communicate without complex bridging systems, so they remained largely isolated from each other. With AWM, subnetworks on Avalanche can transfer data or assets between each other.

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