Key Takeaways:
- Avalanche’s native token AVAX broke out of a week long downtrend to again target $100 price level.
- The ongoing Moralis Avalanche Hackathon might be providing some bullish tailwinds for the token.
NEW DELHI (CoinChapter.com) — Avalanche (AVAX) broke out of a week-long slump to once again move towards a triple-digit price level.
The AVAX price jumped almost 19% from Jan 11’s low of $82.60 to reach a high of $98.02 this Wednesday. However, resistance from the Avalanche token’s 26-day EMA near $99.25 rebuffed AVAX’s upside movement. A move above the token’s 26-day EMA would likely propel AVAX’s price to $107.42.
Furthermore, Avalanche’s continued uptrend could see prices reach $115 before pulling back. The Avalanche token is currently bearish in the short-term horizon, but long-term bullish sentiments remain.
On the other hand, if retail traders start selling to profit from the recent uptrend, AVAX prices could fall to immediate support at $87.6, near its 100-day MA line. In addition, a marketwide sell-off could push prices down to support near $80.
Also Read: Avalanche eyes 47% gains after breakout from a bullish technical pattern.
Avalanche has key support near $75.56, a price level that AVAX has tested quite a few times since Nov 4.
Meanwhile, momentum-oscillator MACD is forecasting strengthening bullish momentum for the Avalanche token. Although the MACD histogram bars are currently negative, the bars are contracting in length, indicating bearish momentum.
Contracting MACD histogram bars mean the MACD line (difference between 12-day and 26-day EMA) moves up towards the MACD signal line (9-day EMA of MACD). Moreover, the relative strength index for AVAX is neutral, currently clocking 47.54 on the daily charts.
The RSI is far from overbought levels, and with increasing bullish momentum, further upside movement for the Avalanche token is likely.
Avalanche Fundamentals
Avalanche, an Ethereum compatible smart contracts platform, provides developers with a fast, scalable platform for creating dApps. In addition, the network partnered with Moralis to launch the Moralis Avalanche Hackathon Winter 2021 on Dec 6. The hackathon aims to encourage more new projects on the Avalanche network.
Also Read: AVAX price rallies 15% in two days as Avalanche blockchain integrates stablecoin USDC.
In detail, Moralis is a Web 3.0 development platform, providing developers access to fully managed and scalable blockchain backend infrastructure. Participants would have to build their projects using Avalanche and Moralis to qualify for the $350,000 prize pool.
Leading venture capital firms like Three Arrows Capital, Republic, AP Capital, and GBV Capital have partnered with Avalanche for the event. The event is halfway through, and Avalanche offers expert guidance to the hackathon participants via discord.
In other news, John Wu, president of Ava Labs, predicted in an interview with CNBC that institutional investment in cryptos would continue in 2022. In addition, he highlighted the increase in VC investment in 2021, from $8 billion in 2020 to $30 billion in 2021, increasing 275%.
The Ava Labs president also said that the investment would likely increase in 2022. In an earlier interview, Mr. Wu had predicted a $5 trillion crypto market in 2022.
At the time of writing, AVAX was trading at $95.06, up 6.06% on the day.
