Avalanche could be bound for further losses as transaction fees on the network skyrocket.
- The average gas fee on the Avalanche network has surged this week after the AVAX price hit a new all-time high.
- The rising transaction costs appear to have encouraged investors to sell.
- The price action is in the wake of public debate surrounding rival Layer 1s, Avalanche and Ethereum.
Avalanche’s AVAX token recorded another new all-time high of $144.96 Sunday amid intense debates between some prolific industry figures concerning the Avalanche blockchain and Ethereum. On Monday, however, Avalanche experienced a tenfold increase in transaction costs as the network processed more than 669,000 transactions, which appears to have caused some panic among investors as AVAX’s market value dropped significantly shortly after.
Public Debate and Apology
AVAX’s volatile price action the last few days has taken place amid some public debate between industry figures. Three Arrows Capital CEO Su Zhu, who publicly shared optimistic price targets for Ethereum ahead of EIP-1559 launching but has more recently turned his focus to Avalanche (Three Arrows Capital announced it had co-led Avalanche’s $230 million raise in September), engaged in a heated discussion with Synthetix founder Kain Warwick, who posted a tweet noting that he had observed many crypto enthusiasts that had “sold out in pursuit of profit maximization.”
Zhu wrote in a tweet that he himself had “abandoned Ethereum” and that Ethereum had “abandoned its users,” arguing that the cost of using Ethereum had priced out newer users and made less expensive solutions like Avalanche more viable alternatives. “The idea of sitting around jerking off watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross,” he wrote.
Several developers working on Ethereum and projects in the Ethereum ecosystem publicly criticized Zhu for his comments. Zhu also posted price charts highlighting Avalanche’s parabolic rally throughout the weekend then apologized for his statements on Ethereum.
Avalanche Plunges While Gas Fees Surge
Sometimes referred to as a so-called “Ethereum killer,” Avalanche competes by providing users with “blazingly fast” and low-cost transactions.
Despite the significant endorsement from Zhu, Avalanche could be falling short of meeting expectations. The smart contracts blockchain has seen transaction fees skyrocket. A sudden spike in network traffic pushed gas fees as high as $10, with the average gas fee reaching 153 nAVAX.
As transactions fees surged to record highs, Avalanche’s market value suffered the most. The DeFi token took a 16% nosedive, going from an all-time high of $144 to hitting a low of $124.6 recently. Further selling pressure around the current price levels could result in further losses.
A daily candlestick close below $125 might push Avalanche to the $110 or even the $100 support level.
It is worth noting that the development team behind Avalanche is already working on different ways to optimize the network and support high demand, low finality, and low fees. As these solutions begin to be implemented, the chances for AVAX the rebound increase.
A downswing to $110-$100 could serve as a buying opportunity for sidelined investors to get back into the market. A rebound from such a crucial support barrier may have the strength to catapult Avalanche towards a new all-time high of $173.
Avalanche (AVAX) Parabolic Rally – Is It Over?
The crypto market has been seeing important corrections lately, but this did not stop the optimistic predictions from hitting the crypto space.
One of the most successful projects lately has been Avalanche and an important analyst is debating whether the coin can go higher in the near future.
Avalanche (AVAX) price prediction
Crypto analyst Benjamin Cowen addressed whether Avalanche (AVAX) has any gas left in the tank after its parabolic rally.
Just in case you don’t know, AVAX hit its ATH of nearly $145 over the weekend.
The smart contract platform was trading around $13 at the beginning of August, according to the notes coming from CMC.
Cowen said that AVAX is getting “somewhat extended.”
On the other hand, he said that Avalanche is at the same level of extension that it was at when it hit $60, and then it more than doubled in price.
Cowen says it would be “concerning” to see the coin get even more extended by continuing to rise in a short period of time.
He also said that AVAX’s US dollar valuation is highly dependent on what Bitcoin (BTC) does.
“As long as Bitcoin stays above its 20-week moving average, then AXAX can continue to rally until it gets too far gone to sustain it in the short term, and then we’ll have a pullback. But as long as Bitcoin stays healthy, then, of course, AVAX can continue to make a move.”
According to the latest reports coming from the Daily Hodl, Cowen noted that AVAX could go up another 50% against Bitcoin.
AVAX could reach $200
According to the analyst, such a move would price Avalanche at just over $200 if Bitcoin’s value remained steady.
As you probably know by now, BTC has been seeing some corrections lately, but this did not stop excited investors from buying the dip.
Avalanche Price Analysis: AVAX ready to resume rally after retracing 23 percent?
- Avalanche price analysis is bullish today.
- AVAX/USD set higher low above $111.
- Buying pressure returned overnight.
Avalanche price analysis is bullish today as a strong higher low was set yesterday after a 23 percent retracement earlier this week. Since AVAX/USD has set a strong higher high, we expect to see more upside over the next 24 hours as the overall market sentiment is still very bullish.
The market has seen buying pressure return over the last 24 hours. The market leaders, Bitcoin and Ethereum are up by 3.85 and 3.8 percent, respectively. Meanwhile, Avalanche (AVAX) is among the top performers, with a gain of over 10 percent.
Avalanche price movement in the last 24 hours: Avalanche resumes rallying after establishing a higher low above $112
AVAX/USD traded in a range of $113.00 – $129.43, indicating strong volatility over the last 24 hours. Trading volume has increased by 29.69 percent, totaling $2.44 billion, while the total market cap trades around $28.7 billion, ranking the coin in 11th place overall.
AVAX/USD 4-hour chart: AVAX looks to return above $130
On the 4-hour chart, we can see the Avalanche price moving higher again today as a strong higher low was set overnight.
Avalanche price has seen a strong advance so far in November. From the previous low of around $60, AVAX/USD more than doubled in price by the 21st of November, when the $147 current high was reached.
After a small initial retracement, bulls failed to reach more upside on Monday, resulting in a lower high set. From there, Avalanche saw substantial retracement until the second half of Yesterday, when a reaction higher was seen above $112.
Bullish momentum rapidly returned for the Avalanche price overnight, leading back above $125 earlier today. Currently, we can see AVAX/USD testing further upside, again, likely leading to the previous all-time high reached by the end of the week.
Avalanche Price Analysis: Conclusion
Avalanche price analysis is bullish today as a strong higher low was set overnight after the several-day retracement came to a stop late yesterday. AVAX/USD currently rapidly moves higher, likely leading to further highs later this week.
While waiting for Avalanche to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.
Avalanche Price Prediction – Will AVAX Price Hit $300 in 2021?
- Bullish Avalanche price prediction ranges from $147.4 to $252.21.
- The Avalanche price might also reach $300 soon.
- Avalanche’s bearish market price prediction for 2021 is $113.27.
This Avalanche (AVAX) Price Prediction 2021 article is based on technical analysis alone. Below, you will see the key metrics that we have taken into consideration upon coming up with our Avalanche (AVAX) price analysis and prediction.
Over the past few days, the crypto market looks to be recovering fast. Moreover, after the dip in the past two months, the crypto market either remains stable or surges steadily. At present, it looks like the crypto-asset industry will surge high again.
Will Avalanche (AVAX) experience the same price volatility? We’ll find out soon in this Avalanche (AVAX) price analysis 2021 article. But first, let’s have a look at what Avalanche (AVAX) is.
What Is Avalanche (AVAX)?
Avalanche is the quickest smart contracts crypto platform in the blockchain industry. The platform has the most validators that secures its activity of any proof-of-stake protocol. Moreover, Avalanche is blazingly fast, low cost, and green platform. More so, any smart contract based application could outperform its competition on Avalanche.
On September 21, 2021, Avalanche launched its mainnet. Since then, the platform has been developed to secure more than 200 individual projects, over $14 million AVAX burned, more than 1,000 individual block-offering validators, and more than 600 community members over the globe.
Now that we have an idea about Avalanche, do you think AVAX will be profitable crypto in 2021? Join me, and together let us check the charts in this AVAX price analysis and AVAX price prediction.
Avalanche (AVAX) Current Market Status
When writing this Avalanche price analysis, AVAX trades at $122.55 with a 24-hour trading volume of $2,245,266,373. The price of AVAX has increased by 3.07% in the last 24 hours.
Furthermore, AVAX has a current circulating supply of 220,286,577.21 AVAX. Currently, the top digital asset trading platforms for AVAX are Binance, OKEx, Huobi Global and Mandala Exchange, CoinTiger.
Now, let’s move to the next part of this AVAX technical analysis for 2021.
Avalanche (AVAX) Price Analysis 2021
Recently, AVAX took the 11th position on CoinMarketCap. But will the recent developments, upgrades, and changes in the blockchain help the cryptocurrency price to reach higher? Let’s proceed to the charts in this AVAX price prediction article.
Based on the chart above, AVAX positions itself along with the raging bulls. Today, AVAX trades at a high price of $63.88. In addition, we can see that AVAX recently performed an Ascending Channel pattern. An ascending channel is the price action that occurs in an upward direction through a rising parallel line.
More so, the chart shows the Higher Highs and Higher Lows from this price pattern. In addition, this pattern represents a short-term bullish.
In other words, AVAX is gearing itself for a possible bullish rally in the days to come. If this happens, the crypto might go beyond its resistance level and reach the bullish price. Of course, this is most likely to happen if the bullish market continues to reside with AVAX.
Conversely, if the bulls turn against crypto, the price of AVAX might fall. In short, AVAX might break out from its uptrend position and nosedive to a bearish price. Indeed, this price level is not a good picture in the eyes of the investors.
The Relative Strength Index (RSI) is at 55.06, which means that AVAX is in an overbought state. Moreover, this indicates that crypto traders and investors need to trade carefully, however, this pushes crypto investors to worry about any major price reversal.
Furthermore, crypto traders must trade cautiously and must not be affected by the cryptocurrency market hype. With this in mind, cryptocurrency traders must be careful to avoid unexpected losses due to the crypto market’s wild swings.
Let us also look at the Exponential Moving Average (EMA) and the Simple Moving Average (SMA) of Avalanche.
Since the start of 2021, AVAX’s price has seen many bullish moves, which are higher than the previous one. More so, these are followed by consolidation, fluctuations, and corrections right away. Taking this into consideration, AVAX has a competitive market this 2021.
Avalanche (AVAX) Price Prediction 2021
The chart below shows that AVAX has performed great over the past few days. Moreover, the AVAX price shows a bullish trend. If this trend continues, AVAX might run along with the bulls, overtaking its $182.57 resistance level and move even higher to $252.21.
Conversely, if the investors turn against the crypto, the bears might take over and push AVAX from its uptrend position. In simpler terms, the price of AVAX might decrease to almost $113.27, a bearish signal.
Meanwhile, our long-term AVAX price prediction 2021 is bullish. It has a high possibility of reaching new heights. However, that will only happen if it breaks many previous psychological resistances.
Avalanche (AVAX) Price Prediction 2022
If this bullish trend continues, AVAX will reach $300 by the end of 2022. Moreover, the first half of 2022 is going to show fast growth, up to $350. Then this rise will slow down, but no major falls are expected. With upcoming, partnerships, and developments reaching $300 is quite optimistic in the price point of view but undoubtedly feasible for the near future.
Avalanche (AVAX) Price Prediction 2023
If AVAX holds the support level around 200-MA, the long-term moving average, buyers will then have ample time and stability to forge the next attack mission on the vital level at $500, making it not plummet but play consistently.
Avalanche (AVAX) Price Prediction 2024
As per the latest upgrades, developments, AVAX price prediction, and new project forecasts of the platform, AVAX investors could expect many partnerships and integrations around 2024. Moreover, this might boost the price of AVAX in the crypto market, and it will be the best investment as the price can spike and reach around $650.
Avalanche (AVAX) Price Prediction 2025
In the next four years, AVAX prices could race up to $800. However, reaching this level could not be so difficult for AVAX as additional medium, short-term, and long-term price targets could be found to purchase or sell orders. This indicates that AVAX has a high possibility of reaching a new ATH soon in the next five years as per the prediction.
AVAX seems to have a great future ahead in 2021. With the ongoing developments happening within the AVAX ecosystem and the overall crypto market, we may see AVAX reach new heights.
Meanwhile, our long-term AVAX price prediction 2021 is bullish. Even more, the bullish AVAX has a high possibility of reaching $252.21. However, that will only happen if it breaks the past psychological resistance. It may even reach $300 if investors continue to side with AVAX this year along with the mainstream cryptocurrencies like Bitcoin and Ethereum.
What is AVAX?
Avalanche is the quickest smart contracts crypto platform in the blockchain industry. The platform has the most validators that secures its activity of any proof-of-stake protocol. Its native asset is AVAX.How to Buy AVAX Tokens?
Avalanche’s native asset AVAX is a good investment in 2021. Users can obtain AVAX tokens by purchasing them from cryptocurrency exchanges such as Binance, OKEx, Huobi Global, and FTX.Is AVAX a good investment in 2021?
AVAX is one of the good investment to make in 2021. AVAX has a high possibility of surpassing its current ATH at about $78.70 this year.Can AVAX reach $300 soon?
Yes, it’s very much possible that AVAX might reach $300 in the near future as per the current bullish trend.What will be the Avalanche price by 2022?
Avalanche (AVAX) price is expected to reach $350 by 2022.What will be the Avalanche price by 2023?
Avalanche (AVAX) price is expected to reach $500 by 2023.What will be the Avalanche price by 2024?
Avalanche (AVAX) price is expected to reach $650 by 2024.What will be the Avalanche price by 2025?
Avalanche (AVAX) price is expected to reach $800 by 2025.