Why Is Avalanche Price Increasing? - Gains +10% For The Day.

Why Is Avalanche Price Increasing? - Gains +10% For The Day.

2021-12-18 | Daniel Smith

Why Is Avalanche Price Increasing? - Gains +10% For The Day.

As it burst from a textbook bullish pattern previously this week, Avalanche (AVAX) improved its argument for a possible upward run to $160 in the upcoming periods. The "bull flag" pattern appears whenever the price unifies lower/sideways within two parallel trendlines (flag) following a powerful upward rise (flagpole). Eventually, in principle, the price breaks out of the channel range to resume the upswing, rising by about the height of the flagpole. AVAX has adopted a comparable price trajectory over the previous 30 days, with an approximately 100% flagpole rally to almost $150, following a more than 50% flag corrective to $72, and a breakthrough movement just above the flag's upper trendline (about $85) on Dec. 15. AVAX price continues to rise after breaching its bull flag range, hitting over $120 on Friday but looking for another leg up to its bullish extension objective at $160. The level occurred when combining the height of AVAX's flagpole, which is approximately $75, to the present breakout point, which is approximately $85. AVAX has had a week full of positive AVAX activities The latest buying session in the Avalanche market gained traction as a result of a slew of strong factors this week. On Tuesday, AVAX gained roughly 10.50 percent when Avalanche introduced the indigenous form of USDC, a dollar-pegged stablecoin created by Circle, to its network. Furthermore, according to research issued on December 10 by Bank of America analysts, Avalanche is a possible approach to the main smart contract platform Ethereum. This corresponded with AVAX earning an additional 16%. AVAX reached a two-week high on Thursday after BitGo, a crypto curator with over $64 billion in assets under management, said that it will support the token. Nevertheless, a little selloff at the local price peak pulled AVAX lower. The recovery began on Friday when Avalanche revealed a partnership with web3 accelerator DeFi Alliance to start a gaming accelerator program. All of the preceding occurrences led to the expansion of the Avalanche ecosystem. For example, with USDC, the project claimed to provide a feasible substitute to Ethereum's exorbitantly priced Tether (USDT) stablecoin transactions. Furthermore, by appointing BitGo as AVAX's institutional custodian, Avalanche looks to be gearing itself to appeal to qualified investors. awax

AWAX/USD 1 DAY PRICE CHART: SOURCE - COINMARKETCAP.COM

Price concerns associated with AVAX One of the major potential risks associated with AVAX is the overall behavior of the crypto market. In particular, AVAC rose during a week in which the whole cryptocurrency market value fell by more than $114 billion, with top crypto assets Bitcoin (BTC) and Ether (ETH) falling by more than 7% and 5%, respectively, week-to-date. Worries about the Federal Reserve's tapering intentions sparked the market downturn. As a result, it seems that traders viewed AVAX as a short-term buffer versus the crypto market's collapse, which was mostly led by a spate of good news. Furthermore, the AVAX/BTC pair was up about 40% week to week at roughly 0.00245 BTC, with the pair's relative strength index (RSI) nearing oversold territory. As a result, AVAX may fall versus BTC in the next sessions. An identical scenario is anticipated in the situation of AVAX/USD since its weekly RSI is approaching overbought territory. The duo, nevertheless, is expected to maintain its bullish tilt as long as it remains over its 20-week exponential moving average (20-week EMA) as support. From August 2020, the green wave has been limiting AVAX's downward efforts.

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