Avalanche (AVAX), which is currently the tenth biggest cryptocurrency with a market capitalization of over $14 billion, has posted an overnight dip of 4.7% to trade at $38.58 at the time of writing.
The losses come amidst a broader market-wide pullback as leading cryptocurrencies Bitcoin and Ethereum also shed value, dropping 1% and 1.8% respectively.
AVAX’s weekend rally appears largely to have cooled off. On Saturday, the token posted an intraday rally of just over 10% as prices climbed from $35.97 to $39.75.
Avalanche has been one of the more volatile cryptocurrencies recently, with prices frequently dropping to a support level just above $30 since the year began. It posted a 2024 low of $27.85 on January 23, according to data by CoinGecko.
According to the chart, AVAX has an RSI of about 40, which indicates little cause for alarm. It’s currently trading at less than a dollar below its 30-day moving average—indicated by the blue line—which again doesn’t indicate anything that AVAX holders should be worried about.
Still, AVAX is leading today’s dip, which means it hasn’t yet found the bottom, and even when other coins begin posting green candles, AVAX is likely to lag behind.
Source: TradingView
Avalanche Could Dip Further
Despite being one of the leading cryptocurrencies by market capitalization, AVAX is also one of the more controversial. A series of reports by anonymous crypto whistleblowing platform CryptoLeaks has harmed its public image by exposing, through hidden camera footage, some troubling allegations about the cryptocurrency project.
According to a former engineer, the AVA Labs team has utilized astroturfing (essentially bot armies over on X or Telegram) to help pump the price of AVAX via a relentless stream of tweets hyping AVAX or denigrating competitors.
The token’s price also sank around 20% in seven days back in August 2023 when video footage surfaced of a lawyer formerly on AVA Labs’ payroll named Kyle Roche admitting that he was frequently encouraged to litigate against competitors in order to abuse the discovery process—a legal procedure where plaintiffs can request internal documents from defendants through the courts—in order to amass intel on the company’s competitors.
Less Controversial Altcoins
Avalanche has a booming community, so a rebound is inevitable, but given the lack of transparency around its progenitors, it’s always good for investors to diversify their portfolios. To that end, it’s worth looking at Ethereum-based Bitcoin Minetrix (BTCMTX), which has so far raised $11.5 million in an ongoing presale.
BTCMTX helps investors put their money to work by providing a very simple onramp into the world of Bitcoin mining. The USP of the project is that it enables token holders to mine Bitcoin without needing to buy any equipment. This is thanks to cloud mining.
Users purchase and stake BTCMTX via the website. There’s no minimum buy and its easy to withdraw tokens so users that just wish to dip their toes in it can see what it’s about. They can stake their BTCMTX and receive cloud mining credits that represent the amount of hash power at their disposal. The greater the hashpower, the more rapidly cloud Bitcoin mining software can break the network’s cryptographic code to validate blocks of transactions and receive rewards in Bitcoin.
The platform also rewards staking with more BTCMTX, helping to fuel the staking/mining cycle and creating two streams of revenue.
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