Here’s why the Avalanche price has jumped by 17% this week
The Avalanche price held steady on Tuesday as cryptocurrencies and other assets rebounded. The AVAX token is trading at $88.52, which was slightly above this week’s low of $76. The network has a total market capitalization of more than $21 billion.
Avalanche bounces back
Avalanche is one of the many platforms that want to become the next big thing in the decentralized universe. The network was launched in 2020 and has grown to become a leading player in the sector.
Developers use Avalanche as a platform for building their own decentralized platforms such as in DeFi and non-fungible tokens (NFT).
In the past few months, the number of developers building using Avalanche has been in a strong trend. They are attracted to the network by its friendly fees and the fact that it is a significantly faster platform. It can handle thousands of transactions when needed.
Data compiled by DeFi Llama shows that the number of DEFI apps built using the network has been rising. There are now 165 apps that have a total value locked of more than $10 billion. As such, it is the fourth-biggest platform in the industry after Ethereum, Terra, and Binance Smart Chain.
The main reason why the Avalanche price is bouncing back is that other assets have also rebounded. In Europe, the DAX, FTSE 100, and CAC 40 indices have risen by more than 1%. Similarly, in the United States, futures tied to the Dow Jones and Nasdaq 100 index have erased some of the losses they made on Monday.
This performance is partly because Russia seems to be embracing negotiations on Ukraine. According to the New York Times, the military build-up near the Ukrainian border has started to ease as Putin talks with Olaf Scholz. In the past few months, there have been a correlation between altcoins and stocks.
Avalanche price prediction
The four-hour chart shows that the AVAX price has been in a strong bullish trend in the past few days. The coin has managed to move between the 38.2% and 50% Fibonacci retracement levels. It has also moved above the 25-day and 50-day moving averages while the Stochastic Oscillator has moved above the overbought level.
Therefore, there is a likelihood that the coin will continue rising as bulls target the next key resistance level at $96.