How many hits can an avalanche hit? [AVAX] take from the latest developments?

  • Grayscale announces the sale of its AVAX holdings in an effort to rebalance its portfolio.
  • AVAX’s Grayscale retention rate is less than 1%.

On January 6, Grayscale Digital sold its stake in Avalanche [AVAX]. According to the company’s announcement on Twitter, the token has been trying to consolidate its weak bullish trend.

A disappointing price move followed. Could this gray measure have a more significant negative impact? Or can the token get rid of it and continue its upward trend?

Read Avalanches [AVAX] Price forecast 2023-24

Grayscale is divesting its AVAX holdings

On January 6, Grayscale filed a report with the Securities and Exchange Commission (SEC) detailing the portfolio rebalancing. The company stated that the fund’s portfolio was changed by selling Avalanche and investing the proceeds on the remaining fund components according to their previous weightings.

AVAX wasn’t the only asset revealed in the ad. to make room for Synthetix [SNX] In DeFi fund, Algorand [ALGO] It was also discharged.

Recent information on Grayscale’s website shows that the company now has more than $164 million in assets under management. AVAX acquired less than one percent of its holdings. AVAX Holdings is included in the company’s final filing with the SEC filed in 2022.

How did the news affect AVAX?

On the daily time frame, the AVAX Index was up 0.31% at the close on January 6th. After Grayscale’s statement, the price of the asset rose to around $11.77 by the end of the trading day.

However, a chart review showed that the asset fell to $11.35 over the same trading period. The price drop may be caused by advertising rather than an intentional grayscale dump.

Source: TradingView

The asset may not witness a significant increase in the coming days and weeks, except for a sharp rise. Similar to the volume scale, the On Balance Volume indicator remained virtually unchanged. Shareholders should not expect any significant price movement anytime soon, even if the news has little or no negative impact on the asset’s price.

Are your holdings blinking green? Check out the AVAX Profit Calculator

The development team prepares…

Although the price has not gone up as much as the owners would like, there is a measure of it going up. A new increase has appeared in the developer activity gauge.

The development activity gauge has risen to 9.57 at the time of writing. The rally, which comes after several weeks of a downtrend, may indicate new features coming to the team.

Avalanche development activity

Source: feeling

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