The Avalanche price erased gains made on Sunday as sentiment in the altcoin retreated. The AVAX token crashed from this week’s high of $64.85 to the current $51. This was a 21% crash, making it one of the top underperformers.
Avalanche slapped in the face
Avalanche is a fast-growing blockchain project known for its fast speed. It is also a well-known Ethereum-killer that has become the 15th biggest cryptocurrency in the world.
Avalanche, which uses the proof-of-stake and smart contracts technology, enables developers to build decentralized apps. Some of the popular platforms in the ecosystem are DeDi platforms like Pangolin, TrueUSD, and bZx.
It is also used by institutions and enterprises, with popular tools being Ryval and the Congress of Quintana Roo. It has also been used to build Non-Fungible Tokens (NFT) like Polyient Games, Snowflake Market, and Spora Finance, among others.
The Avalanche price has jumped recently as the overall demand for Ethereum-killers has jumped. It joins other popular platforms like Elrond, Solana, and Algorand that have jumped substantially. It also rose after the developers announced that DApps built using the network can access decentralized infrastructure through the Pocket Network. In a statement, the CEO of Pocket said:
“Collaboration with a project like Avalanche looking to build dapps and new interoperable blockchains perfectly aligns with the thesis of Pocket Network. We look forward to providing our unstoppable infrastructure for a new wave of developers on the Avalanche network.”
Avalanche price prediction
The daily chart shows that the Avalanche price jumped to an all-time high of $64.97 during the weekend. It then pared back these gains and is currently trading at $50.46, which is slightly above the key support at $43.92. It also moved below the key support level at $59.9626 although it remains above the 25-day and 50-day exponential moving averages (EMA).
Therefore, the coin will likely remain under pressure as it enters a distribution phase. This view will be confirmed if it moves below the key support level at $43.92. On the flip side, a move above the previous all-time high of $59.96 will invalidate the bearish view. In August, I predicted that the AVAX price would decline by about 30% in September.