The first DEX subnet launched on the Avalanche network. AVAX’s direction was positive, but it threatened to surpass an overbought reversal.
According to CoinMarketCap, Avalanche [AVAX] increased by 14.58% in the last 24 hours, but there is also a remarkable development with the project. Notable to mention was the launch of Dexalot Subnet on the Avalanche ecosystem.
The foundation of our double chain has been set. The multi-chain future has begun.⛓️
The #Dexallot subnet powered by @avalancheavax, is here! It’s time to experience blazing speed, ultra-low rates, new incentives and transparency for yourself: https://t.co/wtCVailpgu
Volume up🔊 pic.twitter.com/YazXhv0jDZ
— Dexalot🔺(🚫🤖) (@dexalotcom) February 1, 2023
Read Avalanche [AVAX] Price prediction 2023-2024
Dexalot describes itself as a secure, fast and low cost Decentralized Exchange (DEX) built on the Avalanche ecosystem. Avalanche applauded the development, saying the Dexalot experience would be better for traders as it was on-chain and non-custodial.
Institutional involvement puts AVAX on the wheels
In addition, Avalanche has recently had a range of partnerships. The most notable was the AWS Collaboration per blockchain enterprise solutions. Anyway, other settings seemed aligned with the Avalanche project.
By driving further adoption, the layer-one (L1) blockchain has been able to entice the likes of the NFT marketplace, OpenSea, and e-commerce giant Ali Baba. Shopify wasn’t left out either, because this all happened in the last quarter from 2022.
However, the smart contract Ethereum [ETH] rival seemed to have remained in a position to enjoy the rewards of the collaborations. In the past 30 days, AVAX iraised 93%, making it far above other cryptocurrencies in terms of performance. But can the token climb further?
Torn between solid direction and weak momentum
Indications from the four-hour chart showed that AVAX volatility was approaching extreme levels, as revealed by the Bollinger Bands (BB).
In addition, AVAX price hit the upper bands of the BB repeatedly. This interprets that AVAX may be overbought. If so, it would come as no surprise as 24-hour trading volume increased by 132%.
But it seemed that AVAX was not ready to put down its purchase because of the signal from the Directional Movement Index (DMI). At the time of writing, the positive DMI (green) was 35.43.
Source: TradingView
Realistic or not, here it is AVAX’s market cap in terms of BTC
The opposite in red was down at 12.02. This means that AVAX had a good outlook to continue in the green direction. Furthermore, the Average Directional Index (ADX), which measures directional strength, supported the AVAX price increase.
If the ADX (yellow) was less than 25, the green would have had the potential to turn. But since it was 27.10, AVAX was able to sustain the current uptick.
But traders may need to be cautious about the momentum as the Relative Strength Index (RSI) was at 68.04, close to overbought territory.
In conclusion, AVAX’s direction may be strong, but most of its support may depend on broader market sentiment.
This post Can avalanche [AVAX] climb further after this Subnet launch
was published first on https://ambcrypto.com/can-avalanche-avax-climb-further-after-this-subnet-launch/
