- Avalanche price has formed a symmetrical triangle on the daily chart.
- This is a sign that it will soon have a bullish or bearish breakout.
The Avalanche price has been in a tight range in the past few weeks as investors focus on the platform’s ecosystem growth and new initiatives. AVAX has risen by over 10% in the past 24 hours, bringing its total market capitalization to over $20 billion.
Avalanche ecosystem growth
Avalanche is one of the fastest-growing alternatives to Ethereum. The network’s most important feature is its speed, which sees it process over 4,500 transactions per second (tps). As a result, the number of developers who have embraced the network has been in a strong growth.
Another reason why developers are opting for Avalanche is the significant amount of money that the developers are dishing to its ecosystem members.
A few months ago, they launched Avalanche Rush with a budget of more than $250 million. These funds have been going to developers building some of the top apps using the network.
Last week, they launched another fund worth about $209 million to fund people building metaverse projects. The new fund is known as Multiverse and is a collaboration with other popular platforms like DeFi Kingdoms, AAVE, and Golden Tree Asset Management.
In the past few months, the total value locked in Avalanche has been more stable than other platforms. For example, the TVL has risen by more than 2% in the past 30 days. In the same period, the TVL in Ethereum, Fantom, and Solana has dropped by more than 7%.
This growth has been led by some other popular projects like Trader Joe whose TVL has risen by 38% in the past 30 days. Platypus Finance TVL has risen by over 80% in the same period. Still, others like Alpha Finance and Wonderland have seen substantial outflows.
Avalanche price prediction
The daily chart shows that the AVAX price has been in a tight range recently. This is confirmed by the fact that the coin has moved to the 25-day and 50-day moving averages. It has also formed a symmetrical triangle pattern that is shown in black.
A closer look reveals that this triangle is nearing its confluence price. As such, there is a likelihood that the coin will have a breakout in the next few days. Since this is a symmetrical triangle, it means that it could break out in either direction. As such, the key levels to watch will be at $90 and $60.
Contributors
