Avalanche's AVAX token has seen its price decline 1.4% over the past 24 hours to around $14.04. This comes as the crypto market remains choppy amid unclear directional bias. But how does AVAX's recent price activity compare to TRON's TRX?
TRX Outpacing AVAX Over the Past Month
Looking at the past 30 days shows TRX strongly outperforming AVAX, with TRX rallying 13.4% compared to AVAX's 22.1% surge.
TRX has also posted slightly better gains over the past 2 weeks, up 2.5% versus AVAX's 6.3% return.
However, over the past week, AVAX has edged out TRX, climbing 5.2% compared to TRX's 4% rally.
So while TRX has shown better momentum recently, AVAX has begun to gain some relative strength over the past 1 week.
Market Caps and Correlations
It is important to note AVAX's vastly larger market cap of $4.9 billion compared to TRX's $7 billion market cap.
AVAX is more closely correlated to major cryptos like Bitcoin as a top 15 token, while TRX tends to trade independently.
AVAX Showing Longer-Term Weakness
Despite its recent bounce, AVAX remains down sharply from its all-time highs. It is still 90% below its 2021 peak versus TRX trading 65% below its record highs.
And over the past year, AVAX has plunged 41% while TRX has managed a 14% gain over the same period.
So in the longer-term view, AVAX has substantially underperformed TRX, likely owing to AVAX's closer correlation to Bitcoin and larger market beta.
Should Traders Buy the AVAX Dip to $14?
With AVAX pulling back 1.4% but bouncing over the past week, is now an optimal entry point? While the recent rally is encouraging, AVAX lacks clear upside momentum compared to TRX. Waiting for a technical break above resistance around $15.50 could signal a stronger upside move. Until then, patience is prudent when considering new positions in the choppy market conditions.
Can AVAX Regain its All-Time Highs?
Despite falling 90% from its peak, AVAX retains immense long-term potential as a top DeFi and NFT platform. However, the macro environment remains challenging. With AVAX lagging TRX recently, a sustained Bitcoin and altcoin bull market may be needed before AVAX can challenge its former highs. Continued development and ecosystem growth could aid price recovery, but likely not enough to revisit all-time highs in 2023 without a strong crypto bull market.