Avalanche attempts to cross its long-term support of $13.35!

Avalanche blockchain architecture and its use of X-Chain, P-Chain, and C-Chain has not only reduced unnecessary loads on each blockchain but resulted in a positive turnaround of the returns. The capability of processing 6500 transactions per second cannot be easily rivaled by any of the smart contract-based blockchains. Instead of relying on the proof of stake or proof of work validation methods, AVAX took the unpopular Directed Acyclic Graph with random validator polling.

To become a validator, any enthusiast will have to lock 2000 AVAX tokens. Each of the validator subnets is offered incentives to follow security and resource requirements. These incentives can be customized as rewards or governance voting. With its latest market capitalization of $4.09 billion, the blockchain has only 43% of its tokens under direct circulation, raising several questions on the level of decentralization offered by such a low number. 

Avalanche Price Analysis 

Avalanche showcased its lack of positive strength after facing rejection at the 100 EMA curve in November 2022, followed by a straight dip of 50% value. Technicals are still shocked by profit booking, and buyers are refraining from holding their AVAX tokens.  

AVAX chart

AVAX is following a consolidative price action with the support of $13.35 being retaken after a series of ups and downs. The immediate outlook for AVAX is limited to minor price action, with profit booking not yet subsided. The bounce-back level of $11.5 will now act as a stronger support level, while $13.35 would rally buying activity. 

Before such a scenario is actively conceived, the price action should show respect to the support of $13.35. Resistances for the AVAX token are too far from the last trading value. According to our Avalanche price predictions, AVAX is likely to secure 50-70% gains in case of a buying rally. 

Breaching 100 EMA curves under the support of a rally can create further bullish sentiment. On the contrary, breaking either of the support levels can push AVAX back to the $2.9 level last witnessed in January 2021.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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