Token

Burn

Momentum

Avalanche

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/avalanche-token-burn-rate-soars-yet-avax-price-momentum-stalls" rel="noopener noreferrer nofollow">Avalanche Token Burn Rate Soars, Yet AVAX Price Momentum Stalls</a><br></p>
<p style="text-align: justify">The Avalanche network (AVAX) has experienced a notable surge in the destruction of its tokens, signaling a heightened pace of removal from the total circulating supply. In a recent week, the burn rate significantly escalated with about 31,650 AVAX tokens incinerated, over half on a single day, February 24. This uptick contrasts with the preceding steady daily burn rate of 1,000 to 1,300 tokens.</p>
<h2 id="network-activity-and-token-economics">Network Activity and Token Economics</h2>
<p style="text-align: justify">The spike appears to align with increased transaction volumes on the network, hinting that a boost in network usage could directly fuel the burn rate. Typically, token burning can constrict supply and be viewed as a positive signal for a <a href="https://en.bitcoinhaber.net/insights-on-cryptocurrency-a-market-cooling-down" rel="noopener noreferrer nofollow">cryptocurrency</a>. Yet, despite the aggressive burn, AVAX’s price did not respond with a corresponding increase. On the contrary, interest in AVAX futures dipped by 18%, as revealed by Coinglass.</p>
<p style="text-align: justify">Market sentiment seemed to lean bearish, as suggested by the AVAX long/short ratio not surpassing 1. This ratio often suggests the prevailing trend among leveraged positions. Against this backdrop, <a href="https://en.bitcoinhaber.net/ftms-market-outlook-a-technical-analysis-of-the-falling-wedge-breakout" rel="noopener noreferrer nofollow">technical analysis</a> offers some optimism. The AVAX RSI recently approached the neutral 50 mark but met resistance, implying potential future movement in either direction.</p>
<h2 id="technical-indicators-and-market-reactions">Technical Indicators and Market Reactions</h2>
<p style="text-align: justify">The MACD indicator, which can signal momentum shifts, rested below the signal line, often interpreted as a sign for a potential retracement. Nevertheless, expert analysts anticipate a possible trend reversal that could usher in a sustained uptrend for AVAX. Despite these predictions, AVAX’s price has not been immune to the broader market’s volatility, resulting in an 8.46% decline over the previous week.</p>
<p style="text-align: justify">The decreased price concurrently affected speculative trading interest in the token. Whether these technical and economic developments will translate into a robust price recovery for AVAX remains a subject of speculation among investors and market watchers.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/avalanche-token-burn-rate-soars-yet-avax-price-momentum-stalls" rel="noopener noreferrer nofollow">Avalanche Token Burn Rate Soars, Yet AVAX Price Momentum Stalls</a></h5>

Avalanche Token Burn Rate Soars, Yet AVAX Price Momentum Stalls

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