Avalanche (AVAX) Defies Market Slump; Pumps 20% in 24 Hours
AVAX registered a bullish bounce from the $50 support level, as it resisted the general market slump to continue its bullish trend.
This was in stark contrast to the widespread dip across the market occasioned by Bitcoin (BTC) falling below $70k. As of the time of writing, BTC was trading at $67k, as the kingcoin looked to make a comeback.
BTC’s dip dampened the bullish sentiment in the market with several altcoins also experiencing considerable price dips.
Our previous coverage of AVAX on 7 March when the token was at $42 projected a price rise to $60, due to the buying pressure around the key support level and capital inflows on AVAX.
New Frontiers on Avalanche
Avalanche prides itself as the "most-developer friendly Layer 1" blockchain in the crypto ecosystem. With a tripartite consensus mechanism that involves three sub-protocols (Avalanche-X, Avalanche-C, and Avalanche-P), it is able to process transactions in seconds and provide scale for thousands of transactions per second.
This makes it one of the fastest and most scalable blockchains. Recently, the Australia and New Zealand Banking Group (ANZ) leveraged Avalanche and Chainlink to testrun a tokenized asset settlement system. This testnet was deployed to show the ease of access and trade of tokenized assets across different networks and currencies.
This speaks to the massive growth portfolio available in the Avalanche ecosystem with its native coin, AVAX bound to reap the rewards.
AVAX’s Next Target is $70
The price action on the daily timeframe showed that AVAX could be headed to $70 next after breaking the $60 psychological barrier.
The Chaikin Money Flow (CMF) indicator noted the surge in capital inflows, rising to +0.32. This translated to consistent buying pressure with the Relative Strength Index (RSI) super bullish with a reading of 72.
Buyers can leverage this opportunity for 14% gains from the current market price of $61.8. Furthermore, traders should keep an eye out on the general market outlook, as this can accelerate gains in the short term.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.