The recent announcement of Google Cloud’s integration with Avalanche and numerous other blockchains has sparked interest in the future of the Avalanche network and its native cryptocurrency AVAX. This collaboration signifies the growing interconnectivity between traditional Web2 companies and Web3 protocols, which could have significant implications for the AVAX ecosystem.
One of the key benefits of this integration is that Avalanche users will now be able to utilize Google Cloud for on-chain data analytics, including NFT data and transaction data. This opens up a range of possibilities for developers and users, as they can access powerful analytical tools offered by Google Cloud to gain insights into the Avalanche network.
Collaborations like this are usually indicative of a long-term focus and can instill confidence in the market. The announcement of the integration has already had a positive impact on sentiment, as Avalanche’s weighted sentiment metric experienced a substantial jump in recent days. This suggests that investors and traders are optimistic about the future prospects of AVAX and the Avalanche network.
Furthermore, there was a short-lived spike in volume following the announcement, indicating that some accumulation may have occurred. This coincided with AVAX entering oversold territory according to the Relative Strength Index (RSI), suggesting that the sell pressure may be diminishing and creating potential for a bullish relief.
At the time of writing, AVAX is trading at $8.89, showing signs of a weak bullish attempt in the last two days. However, it is important to note that the previous bearish momentum appears to have died down, which further strengthens the case for a potential bullish outcome. AVAX has been oversold for some time now, and the integration with Google Cloud could provide the catalyst needed for a price reversal.
Despite the bullish expectations, the market still displays signs of low liquidity. This is evident in AVAX’s struggle to escape the oversold zone and secure a significant uptick. Nonetheless, the discounted price presents an attractive entry point for traders looking for a long-term opportunity in AVAX.
In conclusion, the integration of Avalanche with Google Cloud and other blockchains is a significant development for the Avalanche network and AVAX. This collaboration could contribute to a bullish outcome for AVAX, as it signifies increased market confidence and potential for price reversal. However, the market’s low liquidity should be considered when assessing the long-term prospects of AVAX.
