www.banklesstimes.com
HomeNewsAvalanche price prediction: AVAX could soon crash to $60
Avalanche price prediction: AVAX could soon crash to $60

Avalanche price prediction: AVAX could soon crash to $60

Last updated 12th Apr 2022
Disclosure

The Avalanche price has lost momentum lately. AVAX, its native token, is trading at $89.65, which is about 40% below the highest level in 2021. Its total market capitalization has dropped to about $22 billion, making it the 12th biggest cryptocurrency in the world.

Avalanche is an alternative to Ethereum

Ethereum is the best-known smart contract network in the world. It has a leading and commanding market share in its industry. Indeed, some of the most common decentralized projects are built using Ethereum’s technology.

However, in the past few months, Ethereum has come under so much pressure from relatively new and well-funded blockchain projects. These projects are seeking to provide developers with an alternative environment to build decentralized projects like those in non-fungible tokens (NFT) and decentralized finance (DeFi).

Avalanche is one of the biggest alternatives to Ethereum. It is a smart contracts platform that enables developers to build quality decentralized applications (Dapps). The network’s main advantage is the fact that developers find it easy to build projects on its ecosystem.

1
eToro
Minimum Deposit
$200
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

Most importantly, developers love the fact that the network is significantly faster than Ethereum and other Ethereum-killers. For example, it has a transaction per second rate of about 4,500 while Ethereum is able to handle less than 20 transactions. Its transaction finality of less than 2 seconds while Ethereum has about 6 minutes.

According to Defi Llama, there are now 141 apps built on Avalanche. They have a total value locked of about $11 billion, making it the fourth-biggest after Ethereum, Terra, and Binance Smart Chain. Some of the top apps built in the network are Curve, Multichain, Aave, and Abracadabra, among others. Other popular apps in its network are Trader Joe and Pangolin Exchange.

Avalanche price prediction

Avalanche price

The daily chart shows that the AVAX price has been under intense pressure in the past few months. It reached an all-time high of $146 in November and crashed by almost 40% since then. Along the way, it has moved below the 25-day and 50-day exponential moving averages (EMA).

It is also slightly above its key support at $77.45, which was the lowest level in December. This price coincided with the 50% Fibonacci retracement level.

Therefore, for now, the path of the least resistance for the Avalanche price is lower, with the next key level to watch being the 61.8% retracement at $61.

If you want to trade cryptocurrencies, you might be interested in automated cryptocurrency trading robots such as Bitcoin Prime, Bitcoin Era and Bitcoin Code.

Crispus Nyaga

Crispus Nyaga

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.