Why is Avalanche up by more than 16% so far today?
The cryptocurrency market is recovering from recent losses, with Avalanche one of the best performers.
Avalanche has been one of the best performing cryptocurrencies over the past 24 hours. The coin has rallied by more than 16% over the last 24 hours as the broader cryptocurrency market continues to recover from its recent losses.
The rally can be attributed to a recent research paper by the Bank of America analysts who stated that Avalanche is a viable alternative to Ethereum. The analysts say m Avalanche’s ability to scale while remaining secure and decentralized makes it an excellent alternative to Ethereum for DeFi projects, gaming and NFT projects.
The researchers added that Avalanche’s subnet feature is increasing adoption, with more projects hosting their protocols on the Avalanche blockchain. Another catalyst behind Avalanche’s rally is the integration of the USDC stablecoin to its protocol two days ago.
The addition of the stablecoin is designed to boost DeFi adoption on the ecosystem, with USDC the second-largest stablecoin behind Tether’s USDT.
Key levels to watch
The AVAX/USD 4-hour chart is looking bullish at the moment, thanks to the cryptocurrency’s latest performance. The technical indicators show that AVAX is currently performing excellently, similar to the broader market.
The MACD line is currently above the neutral zone, indicating a bullish trend. Furthermore, the RSI of 64 shows that AVAX could soon be heading into the overbought territory. At press time, AVAX is trading at $107 per coin and remains one of the leading cryptocurrencies in the market.
If the current market condition is maintained, then AVAX could surpass the first major resistance point at $119 over the next few hours. In a situation where the broader market continues to rally, AVAX could touch the $130 level for the first time since November.
Unless there is an extended bullish performance, the $140 resistance level should cap off further upward movement in the short term.