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Avalanche (AVAX) price is ripe for a breakout as BENQI token soars

By:
on Feb 28, 2024
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  • The Avalanche token has remained in a tight range in the past few weeks.
  • It remains about 21% below its highest point in 2023.
  • BENQI, the biggest DeFi protocol in its ecosystem, has soared by over 50%.

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Avalanche (AVAX) price has struggled this year even as its peer cryptocurrencies like Ethereum, Tron, and Bitcoin rose to their multi-year highs. AVAX was trading at $40 on Wednesday morning. 

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While this price is 45% above its lowest point this year, it is roughly where it started the year. It has also 21% below its highest point in December.

Avalanche’s price action mirrors that of other coins that did well in the fourth quarter of last year like Solana (SOL) and Injective. They are both a few points below their highest levels in 2023.

BENQI token is soaring

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Avalanche price has wavered this year mostly because of profit-taking among investors who benefited from its surge in 2023. 

This price action is also likely because of its ecosystem, which has not seen any major growth this year. For example, its DeFi total value locked (TVL) has remained at around $1.39 billion this year and has been overtaken by the likes of TON and Bitcoin. 

This trend, however, may change soon if the price action of BENQI’s QI token is to go by. QI was one of the best-performing tokens on Wednesday as it surged to its highest point since December 15th of last year. 

BENQI’s token has soared by more than 50% in the past 24 hours while its TVL has jumped to over $553 million, making it the biggest player in the Avalanche DeFi ecosystem. It is followed by the likes of AAVE, Trader Joe, and GMX.

BENQI is a platform that allows people to lend and borrow cryptocurrencies. It also has liquid staking features that has over $292 million in total assets and the trend is growing. According to its website, BENQI has over 100k users globally. 

It is unclear why BENQI token has jumped in the past few days. A likely reason is that the developers recently partnered with CIAN Protocol, a decentralised automation platform used to onboard complex crypto delta-neutral yield strategies.

Avalanche price forecast

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avalanche price

AVAX chart by TradingView

The daily chart shows that the AVAX price has remained in a consolidation phase in the past few days. It remains below last year’s high of $50 and has formed a symmetrical triangle pattern, which is nearing its confluence level.

Avalanche has also remained slightly above the 25-day and 50-day Exponential Moving Averages (EMA), which is a bullish sign. Further, the MACD has remained above the neutral point while the Stochastic Oscillator sits at 50.

Therefore, the outlook for the Avalanche token is bullish, with the next point to watch being at $50. This target is about 26% above the current level. A confirmation will happen when the coin flips the important resistance at $43.45, the highest swing on February 15th.

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