Avalanche: NFT play gets another boost, but AVAX faces a key matchup
- Avalanche’s NFT growth trajectory had been erratic in recent days.
- AVAX rallied over 16% over the past week, meeting key pressure resistance levels.
February 21, Avalanche [AVAX] announced its partnership with Indian game streaming platform Loco, to launch an NFT marketplace for Esports fans. Titled Loco Legends, the metaverse platform will allow users to collect and trade digital collectibles of Esports superstars.
Loco, the BIGGEST eSports streaming platform in India, brings its 50+ million users to #Avalanche with the launch of @LegendsByLocoan NFT marketplace for esports fans worldwide.
Loco Legends aims to revolutionize online fantasy gaming. @GetLocoNow #ChooseAvalanche pic.twitter.com/Q8i74Kh8jR
— Avalanche 🔺 (@avalancheavax) 21 February 2023
Read Avalanche’s [AVAX] Price prediction 2023-24
GameFi has become one of the fastest growing industry verticals in the cryptocurrency sector. With the latest deal, Avalanche added another high-profile project to its expanding GameFi ecosystem.
Avalanche’s NFT activity lacks consistency
Avalanche has seen sustained growth in the NFT ecosystem recently. According to latest weekly highlights reportCrabada, one of the most sought-after NFT gaming marketplaces, recorded over 2,400 sales in the last seven days.
The result of the latest agreement with Loco is immediately reflected in the NFT values. According to data from Santiment, NFT trading volume more than tripled while the total number of NFT transactions also rose.
Source: Sentiment
It was relevant to note that the NFT growth trajectory for Avalanche had been erratic in recent days. As pointed out in the graph, there were days when volume saw a sharp uptick, possibly reacting to a major launch or partnership. However, trading activity fell considerably in the following days.
AVAX faces key test
A large part of Avalanche’s network traffic is driven by action on the NFT front. Not surprisingly, the inconsistencies seen with NFTs carried over to key performance indicators such as transaction fees and daily active users.
The latest seven-day reading of the two metrics from Token Terminal presented a very similar growth trajectory to that seen in the case of NFTs.
Source: Token Terminal
Realistic or not, here is AVAX’s market cap in BTC terms
AVAX surged over 16% in the past week, data from CoinMarketCap showed. At press time, it faced resistance at the important $20.14 level, which was visited twice in the past month, but faced rejection soon after. A sharp move past this level will thus validate a bullish scenario.
The Relative Strength Index (RSI) rallied over the past week, hovering above the neutral 50 level, indicating that bulls are beginning to take control. Also, the Moving Average Convergence Divergence (MACD) gave hope of a bullish crossover. On Balance Volume (OBV) also advanced, reinforcing the bullish narrative.
Source: Trading View AVAX/USD
