James Atkins
Editor
Editor
As the cryptocurrency market remains on edge, the Avalanche price continues to move in a sideways pattern.
AVAX is now trading at $33.40, which is considerably higher than its previous low of $22.38. The coin’s value has plummeted by more than 77 percent since its all-time high, leaving its overall market capitalization around $8.8 billion.
The Avalanche price has been highly volatile in the past few weeks as investors remain uncertain about the future of the cryptocurrency.
The Avalanche is a decentralized platform that enables the creation and deployment of custom blockchain applications. It is built on Avalanche consensus, a new kind of consensus algorithm that is designed to be fast, secure, and scalable.
The blockchain project known as Avalanche is aiming to offer a superior alternative to Ethereum.
The network has better qualities, including faster speeds, cheaper fees, and more interoperability. 1Inch, Aave, AllianceBlock, and Atlantis Loans are some of the most well-known projects developed in Avalanche.
While the Avalanche ecosystem flourishes, a few elephants continue to loom.
First and foremost, there are increasing worries about the DeFi sector. Following the terrible failure of LUNA, Terra USD, and its affiliated DeFi ecosystems like Anchor Protocol and Astroport.
Second, Avalanche’s native token, AVAX, has lost over 60% of its value since peaking in mid-September.
These concerns have caused the Avalanche price prediction to turn bearish in the short term. However, some analysts believe that the project has long-term potential and that AVAX could eventually recover and reach new highs.
In the meantime, Avalanche will continue to build out its ecosystem and try to attract more users and developers. Only time will tell if it will be successful.
Despite the high yields, investors now know how risky the business is. Just last week, Anchor Protocol was one of the most important DeFi apps in the market, with over $18 billion in assets. What remains is a hollow shell of its former self.
Read more on how to buy Avalanche.
The Federal Reserve is the other major elephant in the room. Even after signs emerged that inflation may have peaked.
The bank is expected to continue tightening its monetary policy. Furthermore, as the US economy enters a period of stagflation, the bank will undoubtedly raise interest rates.
Avalanche’s price is highly correlated with other assets, such as Ethereum and Bitcoin.
If the Fed continues to tighten its monetary policy, it will likely lead to a sell-off in the cryptocurrency market; which would put downward pressure on Avalanche’s price.
The AVAX price’s performance is similar to that of other assets. Bitcoin, for example, has remained at about $30,000 since last night. Following a spectacular resurgence the previous week, American shares are still looking for an edge.
The AVAX market price forms a hammer pattern last Tuesday. Having dropped to a low of $22.5, according to the daily chart. This formation is usually considered a positive indicator in price action analysis.
A bearish flag pattern forms, which is usually a sign of the market’s deterioration. The Relative Strength Index (RSI) and moving averages indicate that the price is still bearish. As a result, the price may drop from last week’s low.
Given the current market conditions. We believe that the Avalanche price is more likely to continue its downward trend than to rebound.
This just goes to show you that anything can happen in the cryptocurrency world. And that you should never invest more than you can afford to lose.
So, if you’re thinking about investing in Avalanche, please do your search and only invest what you’re comfortable with losing.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
