Avalanche AVAX app of cryptocurrency stock market analysis on the screen of mobile phone in man hands and downtrend charts trading data on the background, February 2022, San Francisco, USA.
Avalanche price had a difficult performance in November as a somber mood engulfed the crypto industry. AVAX was trading at $12.80 on Wednesday, slightly above November’s low of $11.40. It has slumped by over 70% in 2022, giving it a market cap of over $3.9 billion.
Avalanche is a leading blockchain project that is known for speed and low transaction costs. It is also known for Avalanche Rush, the biggest DeFi incentive platform in the industry. In the past few months, Avalanche adoption has grown as developers have embraced its easy-to-use platform. It has a growing market share in DeFi, gaming, and non-fungible tokens (NFT).
Avalanche also launched an important app in its product suite known as Core. Core is an easy-to-use application that simplifies how people swap, send, receive, and integrate other apps in its ecosystem. It is fully optimized for the Avalanche, Bitcoin, and Ethereum networks.
Like all blockchains, Avalanche has been under intense pressure in the past few months. For example, the total value locked (TVL) in the ecosystem has crashed by 27% in the past 30 days to $1.9 billion. At its peak, the network had a TVL of over $10 billion. Some of the top apps in its ecosystem are Wonderland, Aave, Benqi, and Trader Joe.
Another potential catalyst for Avalanche price is the growing adoption. On Tuesday, we wrote that Zeeve had started supporting Avalanche Subnets. It is also seeing adoption in the NFT industry despite the broad weakness of the ecosystem.
The daily chart shows that the AVAX price has formed a close correlation with Bitcoin. After falling to about $15,500 in November, Bitcoin remained in a consolidation phase at about $16,200 for the most part. Similarly, Avalanche plunged to a low of $11.43 and then rebounded to about $12.50.
The coin has formed a small inverted head and shoulders pattern and moved to the 25-day and 50-day moving averages. Its MACD has moved to the neutral level. Therefore, at least in the near term, there is a likelihood that Avalanche’s sell-off is capitulating.
As such, there is a possibility that it will soon have a bullish breakout as buyers target the next key resistance level at $15.5, which is about 20% above the current level. A drop below the support at $12 will invalidate the bullish view.
This post was last modified on Nov 30, 2022, 07:27 GMT 07:27