Avalanche [AVAX]: Despite these developments, bulls face resistance

On Feb 23, 2023

Avalanche’s development activity soared as multiple milestones and partnerships were announced this week.
AVAX attempts to keep the bears at bay despite slight selloff from resistance range.

The Avalanche [AVAX] network has maintained robust development activity in the last seven days even as the market volatility slowed down. Here’s a look at how the network has performed this week in terms of development activity.

Avalanche’s social dominance just achieved a new weekly high in the last 24 hours, confirming that the network is receiving a lot of attention. Its development activity metric also registered sharp growth in the last seven days, confirming that developers have been busy.

Source: Santiment

But what has been driving a surge in this development activity and social volume? There have been multiple announcements so far this week that are likely behind the above outcomes. Among those factors is a recap of how demand for native Bitcoin [BTC] grew on the Avalanche network in June 2022.

1/ @avalancheavax enabled native $BTC via the Avalanche bridge June 2022 🔺
Since then $BTC growth on $AVAX has been unimpeded.
An exploration. 🧵👇 pic.twitter.com/yw1Luw4vq2
Trending
How To Use Bitget Exchange To Buy Bitcoin and Crypto [2022]
— Emperor Osmo🧪 (@Flowslikeosmo) February 21, 2023

Reports reveal that the demand for native BTC on Avalanche has enjoyed positive growth since it was launched, starting from roughly 21 BTC to more than 7,000 BTC in less than a year, even during the bear market.

Avalanche makes headway on the WEB3 front

Additionally, Avalanche teamed up with Chinese internet giant Tencent to pursue WEB3 opportunities. According to the announcement, Avalanche will provide Tencent developers with access to subnets and rapid node development.

Avalanche also deployed its new developer framework called HyperSDK this week. It will reportedly make it easier for developers to rapidly develop custom virtual machines while trimming down on complexities in development processes.

Introducing HyperSDK, the first framework for developers to build high performance Virtual Machines on Avalanche, out-of-the-box.
HyperSDK is designed to accelerate custom VM development, creating the foundation to build the fastest blockchains.
So what is HyperSDK? pic.twitter.com/Din3ZlcJht
— Avalanche 🔺 (@avalancheavax) February 21, 2023

How did AVAX respond?

AVAX held up quite well in light of these advances. However, the bulls had a hard time pushing above the $21 price level after encountering resistance.

AVAX price action

Source: TradingView

AVAX’s price action at press time was characterized by lower volatility. Despite this, its trend demonstrated relative strength above the 50% RSI level. Its MFI dipped slightly from this week’s high, confirming some outflows.

Nevertheless, it remained firmly above the 60 range, confirming a weak bearish outcome so far. This outcome also reflects the bearish sentiment since mid-February.

Avalanche AVAX weighted sentiment

Source: Santiment

The bearish expectations, as seen in the weighted sentiment, failed to yield a sizable move. Instead, the same metric has pivoted and now indicates that a bullish sentiment is building up.

This article originally appeared here.