How is the price of the Avalanche (AVAX) crypto performing? Is it continuing the bullish momentum of recent days? And what is the outlook for the future? Below are all the answers.
We recall that Avalanche is a decentralized open source proof-of-stake blockchain with smart contract functionality. AVAX, on the other hand, is the platform’s native cryptocurrency.
Avalanche (AVAX) crypto price rises to $17.06
Analysis of the price of the Avalanche (AVAX) crypto: it is up sharply in recent hours, with bulls pushing the price up more than 1.44%. Specifically, the bullish momentum has been driven by increased demand for the digital asset, with many investors looking to capitalize on its potential.
Strong buying pressure has pushed Avalanche’s price up to a high of $18, breaking through the previous resistance level of $17.06. The price has been rising steadily since yesterday, when it was trading at a high of $16.
Today’s market began trading at $17.06 at the time of writing. However, a move in either direction could trigger the crypto’s next move, as Avalanche’s price is now in a breakout zone.
Thus, bullish people need to be careful because a bearish move could make the bullish trend illegitimate. Anyway, to be more specific, the 1-day Avalanche price analysis reveals that the AVAX/USD pair is trading in a narrow range between the $17.08 and $17.06 levels.
Bullish traders have been in control of the market since yesterday’s open, which could be an indication of further bullish momentum in the coming days. Even though, volatility is on the rise, which is positive news for bidders anticipating future price developments.
Bullish bidders monitor the price of the Avalanche (AVAX) crypto
The upper Bollinger bands are currently at $10.014 and the lower Bollinger bands are trading at $6.640. The convergence and divergence of the moving average (MACD) in the 1-day price chart is also in green, indicating bullish momentum.
These indications suggest that the bulls are firmly in control of the market and may continue to push prices higher if they can break through the resistance level. The relative strength index (RSI) is trading at 50.62, indicating that the market is neither oversold nor overbought.
The AVAX/USD 4-hour price chart also provides evidence that the bulls are firmly in control. The AVAX/USD pair has targeted the $17.06 level in this move, which is the current trading level at the time of writing.
The key support level to watch for will be $16.43, while the key resistance level will be $17.15. Further movements in trading volume could also provide further clues as to where the price might go next.
In addition, technical indicators also confirm the bullish trend, with the Relative Strength Index (RSI) rising above 60. The moving average convergence and divergence indicator (MACD) in the 4-hour price chart indicates that the Avalanche price is gaining momentum as the fast-moving line crosses the signal line.
In addition, the upper Bollinger band is now at $17.748, while the lower band is currently at $16.544. In conclusion, as long as bullish people are in charge, we expect the market to rise further in the near future.
However, further upside potential will present itself if the bulls are able to break the $17.15 resistance level in the coming days. However, if instead the bears succeed in breaking the support level of $16.43, we may see a price correction.
Joe DEX and the influence on AVAX in the short term
As we know, Avalanche (AVAX) has struggled to get users on its protocol in recent months. As such, dApps on the Avalanche network may be able to help the protocol improve its current situation as they see progress.
For example, Trader Joe, one of the most popular DEXs on the Avalanche network, has seen a huge increase in volume in recent weeks, the data show. Indeed, the volume generated on the platform reached a high of $100 million during this period.
Along with that, there was a 22.13% increase in the number of unique wallets on the TraderJoe network in the last week, according to DappRadar. In addition, other popular dApps on the Avalanche network, such as Benqi and GMX, also witnessed a similar spike in activity.
However, at the moment, the popularity of these dApps is not enough to increase daily active users on the Avalanche network. According to data from Dune Analytics, the number of daily active addresses on the network has dropped from 340,000 to 238,000 over the past three months.
This drop in activity has impacted Avalanche’s TVL, which fell from $958 million to $827.29 million over the past month. As a result, the revenue generated by Avalanche was also affected by the lack of activity on the network.
In fact, according to the data, revenue fell by 16% during the week. Cumulatively, the total amount of revenue collected by the protocol, at the time of writing, was $606,600.