A Brief Intro To Avalanche.
Avalanche is an open-source, decentralized platform for programmable smart contracts. It is the fastest and cheapest smart contract platform based on time to finality. The Avalanche decentralized world has multiple applications in the crypto and blockchain industry. It helps developers to launch solidity, compactible decentralized applications quickly and cheaply. Avalanche dApps can execute thousands of transactions per second at lower fees than other services. Platforms like Ethereum need high gas fees for deploying smart contracts; simultaneously, it offers low-cost smart contracts.
The four-hour chart shows that the AVAX price has been in a tight range in the past few days. A closer look shows that the coin has remained below the 25-period and 50-period moving averages.
Most importantly, the coin has formed a bearish pennant pattern. In technical and price action analysis, a pennant is usually a bearish sign. The stochastic oscillator has moved to the middle level.
Therefore, the outlook of Avalanche is lower considering that the pennant is nearing its confluence level. As such, there is likelihood that the coin will have a bearish breakout, with the next key support level being at $25. A move above the resistance at $37 will invalidate the bearish outlook. AVAX was traded around an average price of $3 in 2020 and went for a steep rise to $56 within two months. A return of around 18X times within two months. AVAX tokens traded in the range of $22 to $37 for the next three months. After a gradual price drop, it formed a round bottom formation on the daily chart and broke the rejection range at $38.
AVAX’s downtrend appears to have slowed down with the price finding solid support at $28. The cryptocurrency is unwilling to go lower and the bulls will have to break the key resistance at $32 if they want to turn around the bearish momentum.
🛑DISCLAIMER: I am not a financial advisor. All contents discussed on this blogpost are solely my personal views for education/entertainment purposes only . Do your own research and due diligence.