Why Is Avalanche Price Increasing? - Gains +10% For The Day.
2021-12-18 | Daniel Smith
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/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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