Cryptocurrency enthusiasts are excited about the Avalanche Foundation’s recent investment in meme coins, which has led to a 40% increase in the price of AVAX over the past week, bringing joy to investors.
However, the foundation’s investment in five meme coins – COQ, KIMBO, GEC, and TECH – has also been impacted by the market correction, putting these coins at risk.
Avalanche Foundation’s Meme Coin Portfolio Faces Market Correction
The Avalanche Foundation has embraced meme coins as part of its portfolio, directly supporting coins like KIMBO, COQ, GEC, TECH, and NOCHILL within the AVAX cryptocurrency ecosystem. However, recent trends have led to a downward trajectory for these meme coins, posing potential losses for the Avalanche Foundation.
While the broader cryptocurrency market has shown signs of recovery following Bitcoin’s dip below $68,600, Avalanche-based meme coins have experienced a correction in their prices in recent days.
In the past 24 hours, KIMBO’s price has dropped by 2%, while COQ, GEC, and TECH have seen declines of 7%, 12%, and 13% respectively. In contrast, NOCHILL has bucked the trend with an 11% increase in price, standing out among the meme coin assets in the Foundation’s portfolio.
These meme coins entered the market in recent months, with daily trading volumes reaching millions of dollars, indicating significant activity and interest in these assets.
Avalanche (AVAX) Nearing $70 Amid Positive Momentum
The cryptocurrency Avalanche (AVAX) has surged to $59.28 and shows potential to reach $70, currently surpassing the 141.4% Fibonacci retracement level.
The Awesome Oscillator (AO) displays green bars, indicating sustained positive momentum and an ongoing uptrend in the AVAX price trajectory. However, the Relative Strength Index (RSI) stands at 75.92, signaling a potential overvaluation or overbought condition for the asset.
The elevated RSI value suggests a possible correction, with AVAX potentially surpassing the Fair Value Gap (FVG) range between $43.93 and $46.34 on the daily chart. Filling this gap could pave the way for AVAX to continue its climb towards the $70 target. However, a daily candlestick closure below the lower boundary of the FVG at $43.93 might invalidate bullish expectations for Avalanche’s price. Additionally, the outcome could be influenced by Bitcoin’s price movements.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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