BCH and AVAX are up 75% and 45% in the last 30 days, respectively. Indicators were bullish on BCH, but thighs could turn bearish for AVAX.
Layer 2 blockchains have gained a lot of popularity in the recent past. However, Layer 1 chains have also achieved some milestones, especially Bitcoin Cash [BCH] and Avalanche [AVAX].
Below is an outlook of the current performance of these coins, considering the market condition.
A Look at the Growth of Bitcoin Cash and Avalanche
While the market has remained somewhat volatile in recent weeks, AVAX and BCH have performed well comparatively. To be precise, according to a recent tweet from a popular crypto influencer, the two aforementioned coins recorded almost 200% growth over the last year in terms of price.
According to CoinMarketCap, Bitcoin Cash is up more than 75% in the last 30 days. At the time of this publication, the coin was trading at $462.81 with a market capitalization of over $9 billion. The good news was that the coin’s trading volume also increased by over 90%, which provided the basis for the bullish rally.
On the other hand, AVAX is up 45% in the last 30 days. At the time of writing, the token was trading at $54.65 with a market capitalization of over $30 billion, making it the 10th largest cryptocurrency.
New Directions
With both tokens posting promising gains over the past year, it is worth looking at their metrics to see which direction they are heading in at the end of the first quarter of 2024.
An analysis of Santiment data revealed that both the weighted sentiment of BCH and AVAX remained in the positive zone. This clearly indicated that bullish sentiment around both tokens was high.
Although sentiments indicated that a new bullish trend is possible, AMBCrypto reviewed the daily charts of both tokens to see what the market indicators were indicating. According to the analysis, BCH’s MACD showed the possibility of a bullish crossover. Its Chaikin Money Flow (CMF) also recorded a strong rally, hinting at a bullish rally.
However, the situation for AVAX was a little more complicated. For example, the MACD showed a bearish crossover. The token price had touched the upper boundary of the Bollinger bands and recovered from there.
Additionally, Avalanche’s CMF also deviated. All of these metrics suggest that the possibility of AVAX losing its wave of gains is high over the next few days.
Avalanche Price Analysis
Buyers have managed to keep Avalanche above the $50 breakout level, suggesting that they are attempting to convert the level into support.
The slightly ascending 20-day EMA ($51) and the RSI in positive territory show that the bulls have the upper hand. The AVAX/USDT pair could gradually rise towards the USD 62 to USD 65 resistance zone. Sellers are expected to protect this zone vigorously. If the price turns back from this area, the pair is likely to consolidate between $50 and $65 for a few more days.
BCH Price Analysis
Bitcoin cash (BCH) had managed to exceed $500, but the joy was short-lived as it then suffered a correction of around 10% in just one day. However, the accumulation of whales could portend an upside potential of 24% revaluation according to Aaryamann Shrivastava at Beincrypto.
In the case of BCH, the Market value to realized value (MVRV) is -10.56%. Since historically an asset is more likely to accumulate around these MVRV indices, this area is known as the “opportunity zone.”
By Audy Castaneda
