The Avalanche price is in focus on Wednesday after it surged to the highest level since May 25. The coin is trading at $24.10, which is about 160% above the lowest level in July. This trend brings its total market capitalization to more than $4.2 billion, making it the 34th biggest cryptocurrency in the world. It sits between Axie Infinity and The Graph.
The AVAX price jumped to an all-time high of $60 in March this year. Since then, the coin’s price has been in a modest downward trend. It dropped to $9.20 during the recent cryptocurrency sell-off.
For starters, Avalanche is a blockchain project that is relatively similar to Ethereum and Solana. The network uses the smart contract technology to help developers build super-fast applications.
Its claim to fame is its speed, safety, and stability. For one, while Ethereum has a total throughput of 14 tps, it has 4,500 tp. Similarly, while Ethereum has a 6 minute transactional finality, it has less than 2 seconds. The platform has thousands of nodes and a 81% safety threshold.
The Avalanche price has risen as the number of projects in the network has risen. Some of the top applications built using its technology are Lydia Finance, Pangolin Exchange, Snowball, and Avalaunch.
The daily chart shows that the Avalanche price has made a strong recovery in the past few weeks. Along the way, the coin is approaching the 61.8% Fibonacci retracement level. It has also moved above the 25-day and 50-day exponential moving averages.
Notably, the AVAX price seems to be forming a rounded bottom pattern. In price action analysis, this pattern is usually a bullish signal.
Still, the coin has become substantially overbought. The Relative Strength Index (RSI) has moved to the highest level since February this year.
Therefore, while the overall arrangement is bullish, there is a likelihood that the coin will have a pullback and possibly retest the support at $20. On the flip side, a move above the psychological level at $30 will invalidate this view.