Key Takeaways:
- Avalanche (AVAX) arrived at a significant rebound level, albeit hinting at a bearish continuation.
- The platform’s fundamentals paint a different picture, including a new partnership with Roobee.finance.
YEREVAN (CoinChapter.com) – Avalanche, a layer-1 smart contract platform, fared reasonably well against the previous bearish week wherein several altcoins trimmed their valuations. In the meantime, Avalanche’s native AVAX lost 5% in the same period and arrived at a significant rebound level at $78.
Also read: Avalanche (AVAX) jumps 80% in less than three weeks amid renewed risk-on appetite.
However, the digital asset flashed warning signs on the daily chart as it traded in a Descending Channel. In detail, the formation features two parallel trendlines with a negative slope that maintains the price swing while driving the value down.
AVAX retested the Channel’s resistance on Feb. 10 and could be headed for the support, which would mean a further 40% decline. However, another resistance retest might occur if the token can hold the rebound level at $78.0. In hindsight, AVAX has rebounded from the bar on three separate occasions since Nov. 2021.
Notably, the Descending Channel does not predict a bias after the digital asset completes the formation. However, it is instrumental in determining short-term vectors. For example, AVAX could drop to approximately $47.0 against the platform’s bullish fundamentals if the Channel stays relevant.
Avalanche launches on Roobee.finance
On Feb. 14, Roobee.finance, a blockchain-based investment platform, announced Avalanche Network’s integration. In addition, the investment vehicle clarified that the “deployment to Avalanche will help increase transaction processing speed significantly and lower gas fees for Roobee.finance users.”
Moreover, crypto analyst Miles Deutscher tweeted his bullish views on Avalanche and called it “one of the strongest L1 plays” on the market.
Due to this design, Avalanche can settle transactions in sub 2 seconds and has seen some of the most impressive speeds in crypto. But.. As we know in crypto, tech isn’t everything. You need real user growth to underpin L1 fundamentals. $AVAX emphatically ticks this box.
mentioned the analyst in the thread.
Also read: Bitcoin cannot be superseded by other cryptos as a store of value – Fidelity researcher.
Additionally, Mr. Deutscher commented on the rising number of transactions on the platform as of Feb. 9.
Moreover, Avalanche’s total value locked (TVL) stood at $10.6 billion on Feb. 14, surpassing Solana (SOL) and Polygon (MATIC). The platform also increased its market dominance from 4.89% to 5.25% year-to-date.
