Avalanche is making significant strides to expand the network’s utility, recently announcing plans to integrate Aave and Curve Finance.
Market participants appear to have welcomed the recent developments around it, with AVAX surging in the last three days.
Nonetheless, it looks like a spike in profit-taking is under way, meaning a dip could be on the horizon.
Share this article
Avalanche is on a mission to scale DeFi and create a more accessible, decentralized, and cost-effective ecosystem. The recent developments surrounding the distributed ledger start-up have led to a spike in buying pressure, pushing AVAX toward higher highs.
Avalanche’s Network Utility Expands
Avalanche is riding a bullish wave.
AVAX has seen its price skyrocket by 263% over the last month. The twenty-seventh largest cryptocurrency by market cap increased from a low of $9.30 on Jul. 20 to hit a high of $33.80. Roughly 30% of the entire price appreciation occurred in the last three days.
The bullish momentum that Avalanche has seen is based on solid fundamentals. The distributed ledger project recently partnered with legacy trading cards and collectibles company Topps to build a marketplace for NFTs. Additionally, the Avalanche Foundation announced a $180 million DeFi incentive program dubbed “Avalanche Rush” this week.
According to Emin Gün Sirer, Director at the Avalanche Foundation, the new initiative aims to bring blue chip DeFi applications running on Ethereum ( $3,208.49 ) ( $3,208.49 ) ( $3,208.49 ) to Avalanche, starting with Aave and Curve Finance. In a blog post, he wrote:
“Avalanche Rush will be a showcase for users to see the power of Avalanche, and dive into a vibrant community at the cutting edge of decentralized finance. The combination of Aave, Curve, and Avalanche will create really interesting synergies that DeFi users will be excited about.”
While market participants continue to celebrate the significant strides that Avalanche is making to expand the network’s utility, AVAX could be headed for a correction.
AVAX Traders Ready to Sell the News
The Tom DeMark (TD) Sequential indicator suggests that a spike in profit-taking is underway. It recently presented a sell signal in the form of a green nine candlestick on AVAX’s 12-day chart. The bearish formation forecasts a one to four 12-day candlesticks correction before the uptrend resumes.
A spike in selling pressure that leads to a decisive break of the $28.90 support level could trigger a sell-off among investors. Under such conditions, AVAX could see its market value drop toward the next crucial interest area at $24.70.
It is worth noting that a 12-hour candlestick close above the $35 resistance level might have the strength to invalidate the pessimistic outlook. If this were to happen, AVAX would likely advance towards $41.
This news was brought to you by Phemex, our preferred Derivatives Partner.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
BENQI and Avalanche Launch $3M Liquidity Mining Initiative to Accelera…
BENQI and Avalanche are launching a liquidity mining program. DeFi Projects Launch Liquidity Mining Program BENQI, an algorithmic liquidity market protocol, and the Avalanche Foundation are collaborating on a joint…
Aave is Exploring Solana, Avalanche, Layer 2 Expansion
Aave founder Stani Kulechov revealed that the protocol was looking into expanding its markets beyond Ethereum ( $3,208.49 ) ( $3,208.49 ) ( $3,208.49 ) and Polygon. Aave to Enable Cross-Chain Collateral Decentralized lending protocol Aave is working on…
Efficient Market Hypothesis: Does Crypto Follow?
The Efficient Market Hypothesis (EMH) is a concept in financial economics which states that security prices reflect all the available information about a financial instrument. EMH is one of the…
Decentralized Liquidity Underwriter KUU Partners with BENQI to Scale D…
KUU has announced a partnership with BENQI. KUU and BENQI Join Forces Avalanche-based lending and borrowing protocol BENQI, and KUU, a decentralized liquidity underwriter for the Avalanche DeFi ecosystem, have…