Avalanche Price Up 1.21% – Time to Buy AVAX Coin?

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

The AVAX price recently hit a new high, continuing the coins’ significant rally over the past few weeks. Given that blockchain tokens have been seeing gains lately, this might be a good opportunity for you to buy in. However, investors need to make buying decisions based on strong knowledge of the market. We’ll be looking into the AVAX price and what could have sparked this surge, as well as whether this is a good time to get in.

Avalanche: A Shared Blockchain for Finance Applications

Avalanche is one of the most exciting blockchain platforms in the market right now. It is an open-source platform that allows the development of decentralised applications (dApps) and finance services. Developed by Ava Labs, Avalanche offers a solution to the blockchain trilemma, offering improved scalability with optimal speed and stable decentralisation.

At its core, Avalanche operates on a system of three interoperable chains – the Exchange Chain (X-Chain), the Contract Chain (C-Chain), and the Platform Chain (P-Chain). The X-Chain is used to create new assets, while the C-Chain is the implementation of Avalanche’s Ethereum Virtual Machine. The P-Chain helps to coordinate validators and create subnets.

The P-Chain and C-Chain are secured by Avalanche’s “Snowman” consensus, offering high-throughput, secure smart contracts. On the flip side, the X-Chain is secured by Avalanche’s Direct Acyclic Graph (DAG) consensus – a secure protocol that enables transaction finality in seconds.

Splitting its architecture helps Avalanche to achieve flexibility, security, and speed. The entire platform is centred around AVAX – its native token. Users can buy AVAX for paying network fees, staking, and micropayments.

AVAX: Coin Market Position

Thanks to recent increases in the AVAX price, the coin has been able to shoot to the top of the CoinMarketCap rankings. The coin is ranked #13 on the aggregator, with a market capitalisation of $13.9 billion – up 0.19% in the past day. Trading volumes for AVAX stand at $2.47 billion – up 51.07% in the past day. AVAXs circulating supply is also 220.2 million.

The AVAX price is currently on a significant uptrend, resulting in increased attention for the coin. The AVAX price had hit $60.57 in February after starting the year trading at $3.51. The market slump eventually dragged its price down after it stabilised above the $50 line, and AVAX bottomed out at $9.08 on July 20, following a massive market selloff.

At its bottom, the AVAX price had dropped 85% from its previous high. But, the past two months have seen a resurgence in the coin’s price. The entire market has been on a rally since August, and AVAX hasn’t been left out. AVAX jumped by 199% in August, and it is already up 54.8% in September.

Currently, the AVAX price stands at $61.30 – up 1.21% in the past day and 40.54% in the past week.

AVAX: Coin Price Analysis

AVAX is doing quite well technically. The asset’s 20-day moving average (SMA) stands at $48.74, meaning that it is looking strong and ready to make a bigger move. Day traders will be excited by this, as it means AVAX could easily post larger gains in the next 24 hours.

Long-term traders will also appreciate AVAX beating its 50-day exponential moving average (EMA) of $39.29.

But, it is worth noting that AVAX’s relative strength index(RSI) is 61.81. This is a 10.9% drop from yesterday’s RSI of 69.42, showing that investors are selling off. It will be interesting to see if this metric will jump following today’s price gains.

The gains appear to be tied to a recent funding round from the Avalanche Foundation. Yesterday, the foundation raised $230 million from several venture capitalists, including Polychain Capital and Three Arrows Capital. The funds will be used to support Avalanche’s expansion into the decentralised finance (DeFi) space.

There also seems to be an increasing migration of assets into the Avalanche ecosystem. Data from DeFi Llama shows that the total volume locked on the blockchain has been climbing for a month, reaching a record of $2.16 billion on September 16.

Buy AVAX at eToro from just $50 Now!

1
$50
Mobile AppYes
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.