Avalanche [AVAX] is recognized for its smart contracts platform that boasts infinite scalability and rapid transaction finalization, providing developers with a versatile environment.
In recent times, the cryptocurrency markets have exhibited optimistic signals, despite concerns surrounding geopolitical tensions that could potentially impact market sentiment. Despite these obstacles, Avalanche has managed to surpass the bull market support band.
AVAX is currently trading above both the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA), indicating positive indicators for its long-term outlook.
There is speculation among many traders regarding the possibility of AVAX experiencing significant growth and potentially outperforming Bitcoin (BTC) in the final quarter of the year.
AVAX Demonstrates Superiority over BTC in terms of Valuation
An analysis of the AVAX/BTC valuation over the past couple of months reveals that Avalanche has exhibited more robust performance compared to Bitcoin.
Presently, the AVAX/BTC valuation sits at 0.000450, showcasing consistent growth of AVAX over the last two months. While there has been a steady uptrend, AVAX has yet to surpass a short-term high that would completely outperform Bitcoin.
If Bitcoin takes the lead during the anticipated bullish quarter, Avalanche might encounter obstacles in maintaining its edge. Nevertheless, AVAX has taken an early lead against BTC, though uncertainties remain around its sustainability.
Data from the previous week, month, and quarter indicates that AVAX has gained by 2.81%, 1.79%, 20.23%, and 2.23% respectively against Bitcoin, laying the groundwork for a potential outperformance in Q4.
The 365-Day Rolling Return on Investment
Another crucial metric to consider is Avalanche’s 365-day return on investment (ROI), which presently stands at 3.067. This signifies that AVAX’s returns over the year-to-date have been positive, surpassing the annual average.
Several traders holding AVAX are currently in a profitable position, and with the favorable ROI, they are less inclined to sell their assets, choosing instead to retain them for further profits.
This trend could contribute to the continued ascension of AVAX’s price, bolstering the argument for a strong performance in the final quarter of the year.
Altcoin Season Index
The Altcoin Season Index presents an additional perspective on Avalanche’s potential to outshine BTC. This index tracks the number of top 50 altcoins that have exceeded Bitcoin’s ROI over a 90-day period.
The most recent reading records at 36.73, indicating that it is neither a Bitcoin season nor an altcoin season. Currently, only 18 out of the top 50 altcoins are outperforming BTC, revealing that less than 75% of altcoins are ahead of Bitcoin.
With the dominance of BTC remaining high, it implies that both BTC and altcoins, such as AVAX, are contending for prominence in Q4. Any alteration in BTC dominance could instigate a reversal, potentially favoring AVAX’s surge in price.
Avalanche is well-equipped for a bullish Q4, although its ability to outperform BTC is uncertain and reliant on various market dynamics.