Recording a 76% growth from its January low of US$53, Avalanche is heading to the moon
Despite the ongoing crisis in the cryptocurrency market, Avalanche (AVAX) is surprisingly making positive moves for one month straight now. Yes, during the November price rally, it blazed its way into the top 10 cryptocurrency list. Although Avalanche’s price went down briefly, it is aiming to break its all-time high of US$100 this month. Recording a 76% growth from its January low of US$53, Avalanche is heading to the moon.
Generally, when the cryptocurrency market seems gloomy, investors either won’t buy any token or rely on famous virtual currencies to shield against loss. But despite the low appetite and extreme uncertainty, many people seemed to have invested in AVAX. Avalanche launched AVAX in 2020 to expand its decentralized capabilities and enter the smart contracts, NFTs, and DApps ecosystem. Avalanche crypto has rallied with all other digital tokens this year. But what made it stand out from the rest is its continuing growth despite the slump in the cryptocurrency sphere. Last November, it hit a record high of US$100, occupying the tenth position in the cryptocurrency market by pushing the almighty Dogecoin back. Its tie-up with the ‘Big Four’ accounting firm Deloitte triggered the price rally. Although other virtual tokens are experiencing a negative trend, Avalanche is creating a new appetite among investors who want to spend less but gain more. Further, experts predict that AVAX will step on its previous ATH and perform even better in the coming days and months.
How did Avalanche reach an ATH in November?
For the first time in history, Avalanche’s price hit a record high of US$110 in November last year. Back then, AVAX hopped for an 86% price rally and broader market adoption. The sudden price rally was solely caused by its DeFi growth on the Avalanche ecosystem. Its growing DeFi features and massive adoption has put cryptocurrency at the center of investment. In a nutshell, Avalanche has positioned itself next to Ethereum, Binance Smart Chain, and Solana when it comes to providing advanced DeFi mechanisms.
One more factor that gave an edge to AVAX is Deloitte’s decision to build its disaster relief platforms atop the Avalanche blockchain platform. The company said that it’s Close as You Go Service’, which is aimed to simplify ‘disaster reimbursement applications for victims of a natural disaster by aggregating and validating the documentation required for funding’ will take shape in the Avalanche platform. Ultimately, the move triggered the value of Avalanche crypto. After the move, Avalanche s[ushedoutDogecoinfromthetop10cryptocurrencyindexandoccupiedthetenthpositionbymarketcapitalization[ushedoutDogecoinfromthetop10cryptocurrencyindexandoccupiedthetenthpositionbymarketcapitalization
Can AVAX Break Through the Resistance Level?
With a whopping 76% growth on board, Avalanche crypto has set up US$125 as the local top. Although this sounds impressive, AVAX tokens retraced many times before hopping on the bull run. On the other hand, Avalanche is also facing resistance against the 50-day Simple Moving Average (SMA) and the 100-day SMA at US$88.99 and US$93.86 respectively.
Although Avalanche crypto is all set for a record-breaking run, these two factors meddle in the way. Experts say that there are chances that the downsides might even incite a reversal move and put the cryptocurrency’s price at risk. Currently, AVAX is trying to find a resistance level between 50-day and 100-day SMA, which will help the digital token stay afloat. Even if Avalanche fails to pass through the barrier for a long time, a bearish trend could cloud its price.
What could Give an Edge to Avalanche from Here?
Avalanche has been one of the best performing cryptocurrencies in recent times. In 2021 alone, the AVAX token recorded a massive 4,500% growth, outperforming major cryptocurrencies like Bitcoin and Ethereum. However, Avalanche’s price is highly reliant on its DApps, NFTs, and smart contracts development. Over time, it is also expected to attain mass adoption from investors who are frustrated with the ongoing crypto crisis.
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