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Avalanche: Will 2023 Bring a Fruitful Recovery for the AVAX Ecosystem?

The Cryptobear market 2022 has left a deep mark on the Avalanche ecosystem. AVAX, Avalanche’s native token, dropped by a whopping 89.5%, leaving many investors scratching their heads.

However, the token has seen some recovery. Corresponding CoinMarketCap, AVAX is up 3.78% in the last 24 hours and is trading at $11.53. This price surge is due to certain bullish factors that will play a role in Avalanche’s 2023 recovery.

Developments in the chain are increasing

Although the past year has been very bearish in terms of crypto market pricing, on-chain developments are going strong. Avalanche on December 30th pushed it is incentive program Encouraging dApp development on the Avalanche ecosystem.

December also saw those integration from USDC by Coinbase which will surely get more people into Avalanche and the crypto economy at large.

Avalanche: Will 2023 Bring a Fruitful Recovery for the AVAX Ecosystem?, Crypto Trading News

Avaxholic, a popular Twitter account that recently covers updates about the ecosystem tweeted about the current status of developments on-chain. Re, a Blockchain-capable reinsurer, launched on Avalanche.

Re aims to tokenize the reinsurance market and make blockchain technology accessible to institutions trying to enter the reinsurance market. This puts Avalanche at the forefront of this connection with traditional finance. At this point in time, the reinsurance market projected reach $1.3 trillion by 2031.

Avalanche: Will 2023 Bring a Fruitful Recovery for the AVAX Ecosystem?, Crypto Trading News

Image: The Daily Hodl

partnerships with holding stationa SocialFiWallet-vendors and Odos logwho launched a DEX aggregator Avalanche also played a big role in the current development of AVAX.

Can AVAX break through this level?

Surprisingly, AVAX is less correlated Ethereum compared to Bitcoin. This may present some challenges as the token tests the $11.66 price resistance level.

The king crypto took a hit last year as BTC continued its sideways price action FTX collapsed. This price movement can be broken in January full of macroeconomic indicators that would directly affect the broader financial market, especially AVAX.

Avalanche: Will 2023 Bring a Fruitful Recovery for the AVAX Ecosystem?, Crypto Trading NewsAVAX Total Market Cap at $3.6 Billion on the Daily Chart | Chart: TradingView.com

Since BTC easily with the S&P 500 and the Dow Jones index correlated, a deteriorating macroeconomic trend will affect the crypto king, dragging AVAX with it.

This week will be crucial for AVAX as the Federal Open Market Meeting Minutes and the US non-farm payrolls will be published.

These would give an insight into the US Federal Reserve’s next steps in relation to the inflation situation. If the Fed ever decides to hike rates again, AVAX could lose its current footing.

However, as of this writing, the token has already broken the $11.66 resistance level. Investors and traders should now use the Resistance target from $12.10. However, bulls should exercise caution as the market will inevitably react to macro trends.

-Featured image Dara Rehab

Source: Crypto News Deutsch

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