Avalanche holds above $30 despite politics-driven crypto dip
Avalanche (AVAX) hovered above $30 after breaking out from lows of $26 last week.
Despite overall dip in crypto amid latest US politics news, AVAX looked poised for more gains.
The price of Avalanche (AVAX) continues to hover above $30 as the altcoin holds onto gains despite a broader crypto market dip in the past 24 hours.
On Monday, AVAX price traded around $31.93 at 10.30 am CET. The price remained double-digits up in 24 hours with bulls looking to hold above the key threshold following the spike from $26.73 on July 19.
Crypto dips amid US politics news
On Sunday, US President Joe Biden announced his exit from the 2024 US election presidential race, endorsing his VP Kamala Harris. The immediate market reaction following the news was a slight dip in crypto prices as some panic hit.
Bitcoin, which had traded above $68k on the day, dropped to below $67,500 and Ethereum, Solana and other top altcoins pared gains.
Crypto market intelligence platform Santiment noted that the pattern seen late Sunday and early Monday morning mirrored the crypto market reaction in the hours after last week’s assassination attempt of former president Donald Trump.
“Though wildly different circumstances, the news of the Trump attempted assassination from 2 weeks ago caused a similar price pattern. Throughout the closing hours of Sunday, prices quickly bounced after an initial drop, and are now quite volatile to start the week,” Santiment wrote.
Given Biden has endorsed his VP and other top democrats have followed suit, its likely news related to Kamala Harris will be another trending topic that impacts crypto prices. A similar outlook will also continue to emerge around Trump, who is expected to speak at the Bitcoin 2024 conference in Nashville, Tennessee this weekend.
In this case, Santiment expects US politics to “continue to prove fragile correlations with speculation-driven cryptocurrency prices”.
Avalanche market outlook
Like many altcoins, Avalanche price has surged or dipped in tandem with market sentiment, news and Bitcoin’s performance.
Over the past four months, the cryptocurrency has benefited from positive network developments, particularly partnerships. However, price has also declined sharply on negative news, including the 10% dive that followed the recent incident involving Turkish crypto exchange BtcTurk.
The price of Avalanche dipped as the exchange reportedly lost AVAX tokens worth over $54 million from its hot wallets.
However, integration with Stripe and an announcement from MapleStory Universe had seen AVAX price surge significantly.
While gaming has picked up momentum on Avalanche, there’s new traction in the liquid staking space and the Avalanche blockchain could be set for take-off. The upcoming Avalanche Summit LATAM in Buenos Aires is also a big event in the horizon for Avalanche.
