Avalanche, also known as AVAX, operates as a smart contracts platform renowned for its unmatched scalability and lightning-fast transaction finalization, offering developers a highly adaptable ecosystem.
In the midst of recent bullish signals in the cryptocurrency markets, geopolitical uncertainties loom threateningly in the backdrop. Despite these hurdles, Avalanche has managed to overturn the bearish trend and project a bullish outlook.
Currently, AVAX has soared above the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA), signaling a favorable trajectory for its long-term performance.
AVAX’s Strengthening Position Compared to BTC
An in-depth analysis of the AVAX/BTC valuation trends in the previous two months reveals Avalanche’s resilience against Bitcoin in terms of market strength.
Presently, the AVAX/BTC valuation stands at 0.000450, showcasing consistent growth over the last sixty days. While AVAX’s value has progressively risen, it has yet to surpass a crucial short-term threshold that would indicate a complete upturn against Bitcoin.
In the event that Bitcoin spearheads the eagerly anticipated upsurge, Avalanche might encounter difficulties in holding onto its lead. Nonetheless, AVAX has secured an initial advantage over BTC, but the sustainability of this edge remains uncertain.
Recent data spanning the past week, month, and quarter showcases AVAX’s gains of 2.81%, 1.79%, 20.23%, and 2.23% respectively against Bitcoin, laying the groundwork for a potentially strong showing in Q4.
The 365-Day ROI Trend
Another pivotal metric to consider is Avalanche’s 365-day return on investment (ROI), currently standing at 3.067. This figure signifies that AVAX’s year-to-date returns have been positive, surpassing the average annual returns.
A substantial number of AVAX holders are currently enjoying profits, and with the optimistic ROI, these investors are more inclined to retain their positions, anticipating further profitability.
This pattern could fuel AVAX’s continuous ascent in value, bolstering the argument for a robust performance in the final quarter of the year.
Exploring the Altcoin Season Index
The Altcoin Season Index offers additional insights regarding Avalanche’s potential to outshine BTC, monitoring the number of top 50 altcoins with a 90-day ROI surpassing Bitcoin.
The most recent reading places the index at 36.73, suggesting that neither Bitcoin nor altcoin season is currently dominant. Presently, only 18 out of the top 50 altcoins are outperforming Bitcoin, indicating that less than 75% of altcoins are ahead of Bitcoin in terms of returns.
Given the prevailing high BTC dominance levels, it appears that both BTC and altcoins, including AVAX, are vying for supremacy in Q4. Any shift in BTC’s dominance could potentially trigger a turnaround, favoring a surge in AVAX’s valuation.
While Avalanche seems well-positioned for a bullish Q4, its potential to outperform BTC remains uncertain and contingent on various market dynamics.