Avalanche price rises by 11.8% – time to buy AVAX?

Investors who have been waiting for an opportunity to buy AVAX would be thrilled to see the cryptocurrency overtake many other digital assets. The Avalanche Network’s AVAX token is one of the most powerful crypto assets in the past 24 hours. However, not many may know what the Avalanche blockchain is all about.

So is the time to buy AVAX? Let’s find out.

Avalanche: The blockchain for blockchains

Avalanche is a decentralized financial protocol (DeFi) that uses smart contracts to run applications, financial investments, trading, and other services. The network claims to be the first smart contracts network to offer transaction completion in less than a second as standard throughput.

Avalanche aims to be a global asset exchange where users can build or trade any form of asset and control them in a decentralized manner using smart contracts and other cutting edge technologies.

The DeFi platform launched its mainnet in September 2020 after raising $ 60 million from private and public investments in August 2020.

The platform’s native token, AVAX, performs various tasks within Avalanche and acts as a reward and payment system for users. AVAX is used to pay fees and secure the platform through staking. After that, the tokens are burned to reduce the total supply.

Avalanche was founded by Ava Labs, a company founded by three co-founders, namely Emin Gün Sirer, Kevin Sekniqi and Maofan “Ted” Yin.

It uses a Proof-of-Stake (PoS) protocol, which enables transactions to be completed in seconds at a fraction of the cost of a Proof-of-Work blockchain.

AVAX brings back support levels with a massive pump

The AVAX token has been in a downtrend since Feb.10, after hitting an all-time high of $ 59.40. The decline was gradual at first but accelerated after a lower high on May 7th at $ 39.15.

On July 20, the token really crashed to the $ 9.35 price point. However, AVAX regained support on July 31 at the price of $ 12.77. It lasted into August and gained momentum over the course of the days.

AVAX is currently trading at $ 23.22 and is up 11.8% in the past 24 hours. Although the price of the token has fallen from its highs, it has strong trading volume and is geared towards growth. Now might be a good time to buy AVAX.

Avalanche technical and fundamental analysis

The trading chart shows that the price of the AVAX token has recovered strongly in recent weeks. The digital asset is trading above the 20-day moving average (MA) support price of $ 16.251. The long-term outlook suggests a bullish signal as AVAX approaches the 200-day MA price of $ 23.260.

On the flip side, its Relative Strength Index (RSI) is trading in the overbought territory, with the oscillator pointing to a level of 78.98. A high RSI shows that several investors want to buy AVAX.

The avalanche blockchain has seen increasing development lately. The ecosystem has achieved a Total Value Locked (TVL) of over $ 220 million as more protocols are integrated and expanded into the network.

One of the Avalanche-based projects, BENQI, is expected to start a liquidity mining program with Avalanche on August 19th. As part of the joint program, BENQI users will be allocated AVAX tokens worth up to $ 3 million with other liquidity incentives.

BENQI is also one of the select projects that would launch Avalanche’s next phase of blockchain upgrades. Development focuses on expanding into powerful financial primitives such as money markets.

As part of its upgrades, Avalanche recently introduced a bridge that supports fast, secure, and inexpensive asset transfers between the Avalanche and Ethereum networks.

About Jimmy Aki PRO INVESTOR

Jimmy is a UK-based economist with outstanding hands-on and face-to-face experience in macroeconomic financial analysis, forecasting and planning. He has refined his skills through a cross-continental activity as a financial analyst, which gives him intercultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him to peek under the global hood to see how the world works.

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