Bullish View
- Buy the AVAX/USD pair and set a take-profit at 100.
- Add a stop-loss at 82.
- Timeline: 1 day.
Bearish View
- Set a sell-stop at 82 and a take-profit at 75.
- Add a stop-loss at 95.
The Avalanche (AVAX/USD) price jumped for the third straight day as cryptocurrency prices continued their bullish comeback. The token rose to an intraday high of $96, which was the highest level since January 13th.
Market Mood Improves
Avalanche is a leading layer-1 network that helps to solve some of the biggest challenges that are in Ethereum’s network.
It is a proof-of-stake platform, meaning that new AVAX tokens are created using validators who hold the tokens. As a result, it is more energy-efficient than Ethereum. Indeed, a report published this month showed that Avalanche consumes about 35,000x less energy than Ethereum.
Avalanche is also known for its speed. According to its website, it can handle about 4,500 transactions per second, which is a higher figure than what Ethereum, Bitcoin, and Polygon handle.
Most importantly, Polygon transactions are cheaper than those of other chains. On average, it takes less than $0.001 per transaction.
As a result, more developers have embraced the network. According to DeFi Llama, there are now about 156 apps built using Avalanche’s network. These apps have a combined total value locked (TVL) of more than $10.6 billion, making it the fourth-biggest network after Ethereum, Terra, and Binance Smart Chain.
The biggest DeFi apps built using Avalanche’s network are Aave, Trader Joe, Benqi, and Curve, among others. This trend will likely continue as on-chain activity in the platform increases.
The Avalanche price has also risen because of the recent introduction of TerraUSD in its network. This means that users can use Terra’s main stablecoin in the platform. Another recent news was that Avalanche Labs invested in EonXI Labs as it seeks for more market share in Web 3.0.
AVAX is also rising because of the fact that market sentiment in crypto has improved as evidenced by the fear and greed index, is approaching 50.
AVAX/USD Forecast
The four-hour chart shows that the AVAX/USD pair has been in a strong bullish trend. It has risen by more than 70% from its lowest level this year. At the same time, the pair moved above the ascending channel shown in black. It also rose above the 61.8% Fibonacci retracement level. Further, the Avalanche price is above the 25-day and 50-day moving averages.
Therefore, there is a likelihood that the coin’s price will keep rising as bulls target the psychological resistance level at $100.
