Avalanche Price Up By 11.8% – Time To Buy AVAX?
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Investors who have been waiting for an opportunity to buy AVAX would be thrilled to see the cryptocurrency outpacing many other digital assets. The AVAX token of the Avalanche network is one of the top-performing crypto assets in the last 24 hours. However, not many may know what the Avalanche blockchain is all about.
So is the time right to buy AVAX? Let’s find out.
Avalanche: The Blockchain For Blockchains
Avalanche is a decentralized finance (DeFi) protocol that uses smart contracts to run applications, financial assets, trading, and other services. The network claims to be the first smart contracts network to offer transaction finalization in under one second as standard throughput.
Avalanche aims to be a global assets exchange, where users can build or trade any form of asset and control it in a decentralized manner using smart contracts and other cutting-edge technologies.
The DeFi platform launched its mainnet in September 2020 after raising $60 million from private and public investments in August 2020.
The platform’s native token, AVAX, performs various tasks within Avalanche and functions as a rewards and payment system for users. AVAX is used to pay for fees and secure the platform through staking. After which, the tokens are burned to reduce the total supply.
Avalanche was founded by Ava Labs, a firm established by three co-founders, namely Emin Gün Sirer, Kevin Sekniqi, and Maofan “Ted” Yin.
It uses a proof-of-stake (PoS) protocol allowing transactions to occur in seconds for a fraction of what it would cost on a proof-of-work blockchain.
AVAX Reclaims Support Level With Massive Pump
The AVAX token has been on a downtrend since February 10, after reaching an all-time high price of $59.40. The decrease was initially gradual, but it accelerated after a lower high on May 7 at $39.15.
On July 20, the token plunged really low to the price of $9.35. However, AVAX reclaimed support at the price of $12.77 on July 31. It continued at this range into August, picking up steam as the days went by.
Currently, AVAX is trading at $23.22 and is up by 11.8% in the last 24 hours. Although the token’s price has plummeted from its highs, it has a strong trading volume and is poised for growth. Now might be a great time to buy AVAX.
Avalanche Technical And Fundamental Analysis
The trading chart shows that the price of the AVAX token has made a strong recovery in the past few weeks. The digital asset is trading above the 20-day moving average (MA) support price of $16.251. Its long-term prospects are pointing to a bullish signal as AVAX is nearing the 200-day MA price of $23.260.
On the other hand, its Relative Strength Index (RSI) is trading at the overbought region with the oscillator pointing to a reading of 78.98. A high RSI shows that several investors want to buy AVAX.
The Avalanche blockchain has seen increased development in recent times. The ecosystem has garnered over $220 million in total value locked (TVL) as more protocols integrate and expand on the network.
One of the projects built on Avalanche, BENQI, is set to launch a liquidity mining program with Avalanche on August 19. The joint program will see BENQI users allocated up to $3 million of AVAX tokens with other liquidity incentives.
BENQI is also one of the selected projects that would launch Avalanche’s next phase of blockchain upgrades. The development is focused on expanding on high-performance financial primitives, like money markets.
As part of its upgrades, Avalanche recently launched a bridge that would support quick, secure, and low-cost asset transfers between the Avalanche and Ethereum networks.
