Avalanche ranks at the 12th position in terms of its market capitalization of $20 billion even though it has just 30% of total coins in circulation. Complete circulation would put AVAX amongst the top 10 cryptocurrencies with ease. The recent jump in its value from $20 to above $90 is amazing and has further escalated this cryptocurrency for new investors as a potential skyrocketing digital asset.
The reason for its sudden climb in terms of value is its higher transaction speed of 6500 transactions per second. It has a very strong claim at the dominance of Ethereum in the smart contract domain.
This blockchain network further consists of three more blockchains, X, C, and P. Each of the chains uses a different consensus mechanism while Avalanche is working on creating its dapps and DeFi ecosystem. Sushiswap and TrueUSD have already merged with Avalanche, further growing its influence.
Avalanche Price Analysis
AVAX has finally broken out of its consolidation zone and seems to target $100 in the near term. The price action of this cryptocurrency gives a strong vibe of strength since its retesting of immediate support level before the breakout.
The steep increase in AVAXs value over the last two months can be seen taking the route from the breakout in August 2021. Carrying forward the bullish sentient with a strong buying audience, AVAX has not only broken its resistance once but at every instance so far. AVAX has a breakout at around $72 levels. The current uptrend seems to be capable of reaching $100 and even more in the immediate run.
This uptrend, however, has come with the cost of decreasing transaction volumes for the AVAX cryptocurrency. While it could mean a higher holding pattern of this crypto asset, the fact that only 30% is out of circulation raises eyebrows. The 200 DMA level for Avalanche is trading at a steep difference of close to 50 points or 160% from its 200 DMA level of $35.
Based on our AVAX price prediction, strong swing support of $50 will be countering any fallback or profit booking from the current levels. $50 should be marked as a good level for taking fresh entry into the AVAX coin.