Avalanche price is down by 5 per cent in today’s trading session, continuing its long-term aggressive bearish move that has lasted for months. The drop also comes after three consecutive bullish trading sessions that saw the price rise by 12 per cent.
What is Avalanche?
Avalanche is one of the largest cryptocurrency projects in existence today. Its market capitalization is over four billion, making it the 17th largest crypto. Data also shows the project has over $2.7 billion in total value locked. Since it went live in September 2020, the project has continuously dominated the DeFi ecosystem.
Avalanche uses two sets of consensus protocols known as classical and Nakamoto to function. The classical protocol is fast and low maintenance. But unfortunately, the consensus is hard to scale or be decentralized. On the other hand, the Nakamoto protocol is able to offer decentralized, robust, and scalable blockchains.
Avalanche also has a native cryptocurrency known as AVAX, which has three use cases: the token can pay for transactions; it can be staked, and it can be used as a basic unit of account between the multiple subnets deployed on Avalanche.
Avalanche Price Prediction
Despite being one of the most innovative projects in the markets, the past few weeks have been aggressively bearish. In June, Avalanche lost 35 per cent of its value. The aggressive bearish trend was also evident in May when the crypto lost 53 per cent of its value. In July, the aggressive bearish move looks poised to continue, with prices already down by a percentage point for the month.
In today’s trading session, prices are already down by 5 per cent. The drop is a continuation of the long-term bearish trend, which I expect to continue for the next few trading sessions. As a result, there is a high likelihood that we will see prices drop and trade below the $15 psychological level.
It is also likely that, within the next few trading sessions, the prices will be trading near the $10 price level. However, my strong bearish trend analysis will be invalidated if prices reverse and trade above the $20 psychological level. At that point, it will be highly likely that we will see a bullish move.