Connect with us

Crypto

Avalanche Price Forecast: AVAX Forms a Dangerous Pattern

In the four-hour chart, the AVAX price has been moving in a tight range over the past few days. A closer look shows that the coin has remained below the moving averages of the last 25 and 50 periods. Most importantly, the cryptocurrency has formed a bearish pennant pattern. In technical analysis and price action analysis, it is usually a bearish sign. The stochastic oscillator has moved to the middle range.

Published

on

AVAX’s price line has been moving sideways lately despite speculation that ApeCoin might migrate to the Avalanche blockchain. AVAX is trading at $30.78 after the coin had seen some ups and downs. Its market cap is more than $8.9 billion, making Avalanche the 12th largest cryptocurrency in the world.

Born2Invest mobile app makes it easy for you to keep informed, to intuitively move from story to story, and from section to section. Our clean design lets you read articles without clutter, and use the app with no limits on how many articles you can view. Read more about AVAX price and find the latest business headlines in the world, with the Born2Invest mobile app.

Yuga Labs could bring ApeCoin to Avalanche

Avalanche is a leading blockchain platform known for its blazing fast speeds of over 4,000 transactions per second. The network is used by many developers across industries such as DeFi, non-fungible tokens (NFT), and Web3 games.

Now, there are signs that the network could get another major addition to its ecosystem. Sources say that Yuga Labs, the owner of ApeCoin, is considering a move to the AVAX ecosystem.

The decision to switch from Ethereum to Avalanche or Flow was necessitated by the recent major outage in its ecosystem. The outage occurred when Otherside led to a major congestion in the Ethereum network. The outage led to drastically high gas fees and the outage of other popular platforms, including Etherscan.

Avalanche has faced major challenges in recent days following the collapse of the Terra ecosystem. As a result, most investors have dumped their DeFi tokens after realizing that their investments might drop to zero.

SEE ALSO  How long does this bull market have to live?

Consequently, the total value of the network (Total Value Locked) has dropped by about 5 0% in the last 30 days. It currently stands at $5.1 billion, well below its all-time high of nearly $12 billion. Some of the worst performers have been Platypus Finance, Trader Joe, and Curve.

Avalanche Price Forecast

In the four-hour chart, the AVAX price has been moving in a tight range over the past few days. A closer look shows that the coin has remained below the moving averages of the last 25 and 50 periods.

Most importantly, the cryptocurrency has formed a bearish pennant pattern. In technical analysis and price action analysis, it is usually a bearish sign. The stochastic oscillator has moved to the middle range.

Therefore, the outlook for Avalanche is worse considering that the pattern is approaching its confluence level. It is therefore likely that the coin will experience a bearish breakout, with the next key support level at US$25. A move above resistance at US$37 will invalidate the more bearish outlook.

__

(Featured image by geralt via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

J. Frank Sigerson is a business and financial journalist primarily covering crypto, cannabis, crowdfunding, technology, and marketing. He also writes about the movers and shakers in the stock market, especially in biotech, healthcare, mining, and blockchain. In the past, he has shared his thoughts on IT and design, social media, pop culture, food and wine, TV, film, and music. His works have been published in Investing.com, Equities.com, Seeking Alpha, Mogul, Small Cap Network, CNN, Technology.org, among others.