Avalanche (AVAX) price analysis after current sell-off
- AVAX has weakened from its record highs
- The New COVID variant makes investors nervous
- $100 represents strong support
Avalanche AVAX/USD has weakened from its record highs above $146, registered on 21st November, to $101.3, while the current price stands at $107. Technically looking, AVAX has entered a bear market, and the risk of further decline persists.
A platform for decentralized applications
Avalanche is one of the fastest smart contracts platforms in the blockchain industry that allows you to build decentralized applications.
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Avalanche can process more than 4,000 transactions per second, and according to its official website, it has the most validators securing its activity of any proof-of-stake protocol.
Avalanche is fully compatible with Ethereum assets, apps, and tooling; still, if you decide to deploy smart contracts on Avalanche, it will cost you just a tenth of what they cost on Ethereum.
This platform also enables developers to build their own virtual machine and dictate exactly how the blockchain should operate
High gas fees and other adverse effects of slow smart contract blockchains are now a thing of the past, and Avalanche’s flexibility is positioning it to compete for DeFi market share.
Many projects already collaborate with Avalanche, and the most popular ones include Aave, Ankr, Binance, Bitfinex, Celer, Huobi, and Nexo.
AVAX is a cryptocurrency that powers Avalanche, and the price of this crypto has reached a record price level above $146 on 21st November.
Since then, the price has weakened, and if you decide to trade this cryptocurrency in the upcoming days, you should have in mind that AVAX can weaken even more.
The cryptocurrency market remains under pressure after the news of a new COVID variant that may initiate new lockdowns around the world. Peter Garnry, head of the equity strategy at Saxo Bank, added:
Markets are reacting negatively because it is unknown at this point to what degree the vaccines will be effective against the new strain, and thus it increases the risk of new lockdowns, which leads to an economic hit.
$100 represents strong support
Avalanche (AVAX) has been one of the best performers on the cryptocurrency market in the third week of November, and the price of this cryptocurrency reached record highs above $146.
Technically looking, AVAX has entered a bear market, and if the price falls below $100 support, it would be a strong “sell” signal.
The next price target could be around $90 or even above; still, if the price jumps above $130 resistance, we could see AVAX again above $140.
Avalanche (AVAX) has weakened from its record high above $146, registered on 21st November, and technically looking, it has entered a bear market. The price of AVAX can easily back below the $100 support, and probably it is not the best moment to buy this cryptocurrency.
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