Dubbed as “Bull Flag,” the structure emerges as a brief sideways/downward trend following a strong price move higher. As a result, Bull Flags tend to look like downward sloping channels, represented by two parallel trendlines that trap the price action.
Additionally, the market’s underlying trade volume dries up as the prices move lower, indicating weakness in the downtrend. Therefore, Bulls Flags typically resolve following a break above their upper trendlines, with prices pushing as high as the previous uptrend’s height, i.e. Flagpole.
AVAX’s price action since Aug. 17 has apprehensively led to the creation of a Bull Flag pattern.
The chart above shows the structure’s fruition, right from the $37-long uptrend (Flagpole) to a downward sloping channel’s formation to an upside breakout. As a result, AVAX price now looks to be targetting $80.
That is primarily because of Bull Flags’ popular profit targets; analysts look for the price to break higher with length equal to the flagpole’s size. Therefore, measuring from the breakout level ($45.64), the AVAX profit target comes to be at around $82.
The setup appears as the Avalanche token reaches another record price level, hitting $66.47 for the first time in history, following a 618% rebound rally from its July 20 low of $9.25. Meanwhile, on a year-to-date (YTD) timeframe, its gains are an astonishing 1,988%.
DeFi and NFT boom behind soaring AV
The rally in Avalanche markets closely followed similar moves across smart contracts tokens that rival Ethereum, the leading public ledger behind the booming decentralized finance (DeFi) and nonfungible token (NFT) space.
But Ethereum’s reign as a top smart contracts protocol has come under doubt due to its expensive transaction costs and network congestion issues. As a result, the market has made space for the so-called “Ethereum killers” like Solana (SOL), Cardano (ADA), Fantom (FTM), Avalanche, and others.
For instance, the total value locked (TVL) inside the Solana ecosystem has jumped by 165% in the previous seven days, as per data reported by DeFi Llama, while SOL/USD in the same timeframe has jumped by over 42%.
Similarly, Fantom’s TVL has soared 12.73%, with FTM/USD exchange rates rising by 39% in the last seven days. As for Avalanche, the TVL has spiked 0.5% and AVAX/USD has risen by 41.10%.
In contrast, Ethereum’s TVL has declined by 22.69%, signaling liquidity migration to rivaling chains.
AVAX/USD started rallying, particularly after the Avalanche Foundation launched a namesake DeFi incentive program on Aug. 18. The organization allocated $180 million to DeFi protocols that want to migrate from Ethereum chains to Avalanche one.
Benqi, a decentralized non-custodial liquidity market protocol built atop Avalanche, received $3 million from the foundation’s grant.
Avalanche also witnessed growth in the NFT and DeFi projects looking to run atop its public ledger. That included a partnership Topps, a collectible and trading card maker that employed the Avalanche blockchain to launch its “2021 Topps Major League Baseball Inception NFT Collection.”
Nonetheless, Ethereum remains the dominant force in the smart contracts space. The project is undergoing major network upgrades to resolve its scalability and network fees issues, i.e. by updating its core proof-of-work protocol to proof-of-stake completely by next year.
Is Avalanche In Surreptitiously Working To Flip Ethereum’s Utility Dominance?
The crypto town has been ardently tarrying for bright and sunny days to prevail. That could counter the burdening dark clouds that have been hovering over the industry. While traders gripe over the slashing prices of digital assets. The underlying blockchain continues to ascend stoutly, unflinching by market trends.
Avalanche is one of the prominent smart contracts platforms, which has been flourishing in space. The blockchain has been thriving with numerous adoptions and collaborations. The applications based out of Avalanche continue to prosper at an appreciable pace.
Avalanche Evolving To Be The Ethereum Killer?
According to sources, the MELT staking pool goes live on Defrost Finance. The users can stake MELT to get more MELT and H20. The interest automatically compounds to 107% a year. Users also get access to governance, while incurring no impermanent loss.
Platypus De-Fi will be launching an “Initial DEX Offering” (IDO) worth $1,000,000 on the Avalanche app. Registration for which commences from the 9th of December, 2021. While the sale is scheduled for the 13th of December 2021.
Moreover, the Avalanche ecosystem has been on a constant rise lately. The top 3 gainers for the last 24-hours as on the previous day are LF with gains of 241.5%. TEMPO with gains of 43.1%, and ALEPH at 12.9%. In addition, Hurricane Swap, the first cross-chain liquidity DEX on Avalanche, is now listed on Hotbit news.
AVAX at the time of writing is trading at $90.46 while scripting red gains of 6.1%. The market cap of the digital asset is currently hovering at about $21,975,393,566. While the volume of trades for 24-hours is at $866,271,760. The digital coin has been trading in the frequency from $88.06 to $96.29. The ATH of $144.96 is now short by 37.8%, which was last claimed about 17 days ago.
Collectively, Avalanche has been the go-to smart contracts platform for users looking forward to lower transaction costs and faster transactions. Netizens are expecting a spike in gas fees of smart contract chains like Avalanche and Solana in near future. However, the ecosystem of Avalanche seems promising with its flourishing protocol.
AVAX Price Analysis: The Coin Price Has Discounted 35% In This Correction Phase; Is This a Fair Value For AVAX?
The AVAX token is trying to stabilize its price from the remarkable rally it initiated in august with a correction phase. Currently, the price is plunged to the crucial support of the $0.5 Fibonacci retracement level, which has the potential to continue the bulls rally.
Key technical points:
- The dynamic support 20-day EMA is flipped to the possible resistance level
- The intraday trading volume in the AVAX token is $1.37 Billion, indicating a 14.15%.
The last time when we covered an article on AVAX/USD, The token price rally gave $146 as its New All-Time High on the technical chart. After a robust rejection from this new resistance, the token initiated a retracement phase, where he has lost 25% over the last two weeks. The token is currently sunk to 0.5 Fibonacci retracement level and indicates a high demand pressure through numerous lower price candles.
The crucial EMA levels(20, 50, 100, and 200) sustain a bullish mood for this token since its price is trading higher than the trend defining 100 AND 200 Ema. However, the dynamic support of the November rally 20 EMA is flipped to resistance.
The Relative Strength Index(44) shows a constant downward trend in the chart that is approaching the oversold zone.
AVAX/USD 4-hour Time Frame Chart
The AVAX coin price showed an impressive V-shaped recovery after bouncing from the $80 support. However, the crypto traders should wait for the price to break out from this nearest resistance of $100 to get a better confirmation for the price to continue this rally.
According to the Fibonacci pivot levels, the crypto traders can expect the nearest resistance at $97, followed by $116. As for the opposite end, the support levels are $77 and $65.
Avalanche (AVAX) Continues to Get Vertically More Scalable by The Day
Kevinsekniqi expressed: Honest talk: The reality of the situation is that Eth2 in production will look very closely to Avalanche (c-chain, specifically), although Avalanche will probably remain more robust (simpler, and thus less likely to go down) and faster. Look at the facts.
Avalanche continues to get vertically more scalable by the day. Record gas past few days and zero instability. – Subnets will scale horizontally. All Ethereum L2s will also become Avalanche L2s (eg Starkware). – Developer and usage numbers are exponentially up to the right.
Avalanche just works. Today. And it’ll keep getting exponentially better. I’m not pulling these adoption dreams out of my ass. It’s just already happening right now. Record devs are deploying. TikTok’s with hundreds of thousands of likes out there for native projects.
Literally the only thing you can say right now about Avalanche not overtaking Ethereum in usage and adoption is entrenched interest. Which is a fair point. Never doubt bag holders.
To be clear: while I strongly believe Avalanche will compete extremely strongly against other smart contract chains in adoption, I still want others to very much keep innovating and succeeding.
Community reaction: I imagine the real hurdle, now that the future is ZKRs, is which L1 manages to reach the greatest levels of security and decentralization, as well as dev mindshare (when truly novel stuff is being built on a non-ETH L1s first, not just forks).
Because as you say, if ZKRs are broadly adopted, speed and pricing should level out mostly or be negligible between L1s own ZKR implementations.
Otherwise for those who are new, Avalanche is a community growth platform building an inclusive environment for all aspects of Avalanche. Earn AVAX today.
Major Milestones: – Avalanche-Ethereum Bridge (AEB) launched; – Pangolin, largest DEX on Avalanche, launched; – $0 to ~$400M Total Value Locked (TVL) across the Avalanche platform; – $1B trade volume across all DEX’s; – $10B+ of AVAX staked to secure Avalanche.
The list of ecosystem projects are: Global Exchange Listings (Phase 1); Reef Finance; bZx; e-Money; YIELD; Union; Aleph.im; Frontier; Okcoin; DSLA Protocol; Velox; Copper; Pangolin.
Bitpanda; Axelar; Router; Injective Protocol; Coin98; Proof of Learning (PoL); Cartesi; Congress of the Mexican State of Quintana Roo; TUSD (Trust Token); SIMBA Chain; MyCointainer; OIN Finance; FRAX.
Simplex; Blocknet; JUL Wallet (wallet); TrustSwap (wallet); Immunefi; SushiSwap; Covalent; Orion; Nash; Prosper; HackenProof; AVAXSTARS.
So, for each quarter the numbers of ecosystem projects are increasing, it is worth checking them out to understand the richness of the ecosystem.