Lower usage brings lower prices ---- AVAXThe employment data on Friday didn't change anything. Although gold and U.S.stocks rebounded, crypto continued to fall due to potential selling pressure from Mt. Gox and others. We believe this situation may continue into the interest rate cutting cycle.
When recently sorting out on-chain data, including activity, TVL and other data, we found that the data of some old chains continued to decline and their fundamentals deteriorated seriously. This will result in its performance in the market being generally worse than other public chains.
Avalanche is one of them. Except for the popularity of SocialFi protocol Arena in its ecosystem last year, there is almost no news at all. The same is true from the data. According to the number of 24h active addresses announced by Nansen, Avalanche holds about 40k active addresses every day, which is far less than the mainstream chains. And in terms of TVL decline, Avalanche and Optimism have become the largest heading chains with the largest decline recently. Of course, Optimism’s TVL is shared more with other chains in the OP alliance, such as Base. Avalanche, on the other hand, had a net outflow.
The same is true from the indicators. Although the market has rebounded in the past two days. But AVAX is always below the wavy area of the TSB indicator. And the current trend is a downward trend that started on July 4th. This shows the weak performance of AVAX.
Introduction to indicators:
Trend Sentinel Barrier (TSB) is a trend indicator, using AI algorithm to calculate the cumulative trading volume of bulls and bears, identify trend direction and opportunities, and calculate short-term average cost in combination with changes of turnover ratio in multi-period trends, so as to grasp the profit from the trend more effectively without being cheated.
KDMM (KD Momentum Matrix) is not only a momentum indicator, but also a short-term indicator. It divides the movement of the candle into long and short term trends, as well as bullish and bearish momentum. It identifies the points where the bullish and bearish momentum increases and weakens, and effectively capture profits.
Disclaimer: Nothing in the script constitutes investment advice. The script objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the script are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
