On October 9, Avalanche [AVAX] confirmed that it will host Crypto Royale in the middle of October. a timely announcement considering AVAX’s difficulty in overcoming its short-term support. Is this upcoming development sufficient to support bulls in AVAX?
This month’s announcement that Avalanche will host Crypto Royale may give it some weight. In 2021, play to earn games made news because of their potential to change the gaming industry.
Because of this, the fact that the Avalanche will host a play-to-earn game is significant. If it is connected to tokenomics in games, demand for AVAX could rise.
Players will have the opportunity to acquire ROY, the game’s official token, and AVAX, according to the official announcement. The curious question that is on the minds of many AVAX enthusiasts is whether or not this will be beneficial to the cryptocurrency. The launch of the game on AVAX has the potential to improve investor sentiment, but it is unknown whether this will be enough to propel AVAX above its current support level.
Poking the bull
AVAX ended the second half of the previous week on a bearish trend as of October 9th. Because of this performance, its previous attempt to rally was stopped short of its short-term support near the $16 price range. As of October 9th, AVAX was trading for $16.90. AVAX, on the other hand, had gained 1.5% in the past 24 hours to reach $17 at the time of writing.
In particular over the past two months, AVAX’s Relative Strength Index (RSI) displayed signs of relative strength. Despite a decline in price, it has made higher lows since the end of August. Because it indicates healthy accumulation in the bottom range, such an observation frequently prompts a major pivot.
Over the past four weeks, AVAX volumes have been overwhelmingly positive. However, the cryptocurrency’s on-chain volumes significantly decreased during this time. To put it another way, there was less pressure to sell now than there was in September around the same time.
It is easier for the bulls to take control when bearish volumes are low. However, there are additional indicators that could point to a bullish pivot. For instance, the Avalanche has shown a lot of development activity since the beginning of October. This may inspire investors, resulting in a shift in sentiment in favor of the bulls.
However, investors were still siding with the bears, as indicated by the weighted sentiment. The current sentiment consensus was at its lowest level in four weeks, which may have prevented the bulls from playing. Last time, we saw a bullish attempt with the same level of weighted sentiment.
A bullish attempt was made a week ago, but it didn’t work out as expected. Given the alignment of favorable factors, it is likely that another attempt to be bullish will be made within the next few days. The Crypto Royale game will get players excited, but it’s not clear if the price action will follow suit.
