Avalanche Price Up 2.04% – Time to Buy Avalanche Coin?
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Avalanche (AVAX) is an interesting project for many reasons but does the recent price movement make it necessary to buy AVAX? In this article, we’ll consider the ins and outs of the Avalanche project and what makes it tick.
Avalanche Price Up 2.04% – Time to Buy AVAX?
Launched in September 2020, Avalanche operates as an umbrella platform that allows people to launch decentralized finance (DeFi) protocols – as well as trading platforms, financial assets, decentralized applications (dApps), and more.
Avalanche aims to grow into a global assets exchange that allows anyone to launch and trade any form of asset. Users will be able to control their assets in a decentralized manner, thanks to smart contract capabilities and other technologies. Transaction confirmation items on Avalanche take less than a second, with AVAlanche’s native token AVAX functioning as a transaction medium and reward token.
Avalanche’s primary uniqueness is its ability to offer decentralized asset trading. With sub-second transaction confirmations, it is fast and secure at the same time. AVAX is the network’s in-house token and payment method, and it is also used for fee collections during transactions and for incentives and other purposes. Users interested in earning passive income will also be able to stake their tokens to earn more.
AVAX: Price Movements in 2021
AVAX has had quite an interesting year so far. The asset entered into 2021 trading at $3.26, and it quickly rose. Following successive highs, AVAX hit its all-time high of $60.129 on February 10. The asset’s price soon dropped, although it managed to hold above the $40 point for most of the time.
When the downturn hit AVAX, the token had been trading at $43.87. The token’s price immediately plummeted, hitting $11.96 on May 23. That wasn’t all, though – following different futile attempts to climb, AVAX bottomed out finally at $9.40 on July 20 – following the market selloff that happened that week.
With its bottom, AVAX had lost 84 percent of its value from its all-time high.
In August, however, AVAX’s rise has been astronomical. Investors have trooped in to buy AVAX, pushing its price to the moon. In the past month, AVAX has jumped from $10.88 to a current price of $50.10. That’s a jump of 360 percent in a month.
Avalanche has benefited largely from the market uptrend. Investors are now more confident to get in on small-cap assets, and many have chosen to buy AVAX as well. Now, the asset looks set to cross its all-time high once more.
Currently, AVAX is trading up 2.04 percent in the past day and up 118 percent in the last week.
AVAX: Technical and Fundamental Analysis
AVAX is currently holding strong technicals, thanks in no small part to its price surge in the past month. The asset is trading well above its 20-day moving average (MA) of $27.39 and its 20-day MA of $24.00.
The price jump caused many investors to buy AVAX, leading to an increase in its relative strength index (RSI) to 96.123 as of August 23. However, the current market correction has caused that to drop to 83.10. It is expected that this metric will drop a few points more, so you might have a good entry point to buy AVAX.
As for fundamentals, there’s a lot to cover. Last month, the Avalanche developers announced the launch of its Avalanche Bridge, which will replace its months-old Avalanche-Ethereum Bridge. The new bridge is expected to be five times cheaper than the former, and the Avalanche developers believe that it will be an important part of the project’s future.
Since the bridge launched, it has transferred over $100 million in asset value between Avalanche and Ethereum, with holders capitalizing on lower fees and quicker transaction confirmations.
Earlier this month, the project also announced Avalanche Rush – a $180 million liquidity mining incentive program – in collaboration with top decentralized exchange Curve Finance. The fund is expected to spur the development of more applications and assets in Avalanche’s growing DeFi ecosystem.
Phase one of the Rush program will begin soon, allowing users to get AVAX as liquidity mining incentives for Aave and Curve over three months.
