The investment strategy of the Avalanche Foundation into meme coins has recently captured the attention of the cryptocurrency community. With a substantial 40% appreciation in AVAX’s value over the past seven days, the foundation’s decision appears to be fruitful, benefiting investors. Despite this success, the recent market downturn has impacted the five meme coins in the foundation’s portfolio, namely COQ, KIMBO, GEC, and TECH, raising concerns about their stability.
Market Response to Avalanche’s Meme Coin Holdings
The Avalanche Foundation has incorporated a selection of meme coins, including KIMBO, COQ, GEC, TECH, and NOCHILL, into its investment array within the AVAX ecosystem. Despite this diversification strategy, the market’s downward trajectory has cast a shadow on the potential returns of these assets.
After a dip in Bitcoin‘s price below the $68,600 mark, there has been a resurgence in the overall crypto market. However, the meme coins associated with Avalanche have not been spared from recent price corrections.
Performance and Trajectory of Meme Coins and AVAX
In the last 24 hours, KIMBO, COQ, GEC, and TECH have experienced declines of 2%, 7%, 12%, and 13% respectively. In contrast, NOCHILL has seen an 11% increase, setting it apart from the rest. These tokens, only introduced to the market in recent months, have already seen their daily trading volumes surge to millions of dollars.
The current value of AVAX at $59.28 signals a trend towards a $70 mark, as it stands above the 141.4% Fibonacci retracement level. Trading indicators like the Awesome Oscillator show continued positive momentum for AVAX, while the Relative Strength Index, at 75.92, suggests the possibility of overvaluation.
If the RSI points towards an incoming correction, AVAX could look to breach the Fair Value Gap on the daily chart before potentially climbing towards $70. Although, a close below the Fair Value Gap’s lower limit could disrupt these bullish predictions, with Bitcoin’s price trajectory also playing a role in AVAX’s future movements.