Key Takeaways:
- USDC stablecoin went live on smart contract platform Avalanche.
- The ecosystem’s in-house AVAX token responded with a 15% uptrend in the previous two days.
YEREVAN (CoinChapter.com) — Avalanche blockchain’s native asset AVAX rallied 15% in just two days of trading as traders assessed its foray into the stablecoin sector by adding USDC.
Developed by peer-to-peer payments technology company Circle, USDC already runs atop Ethereum, Stellar, Algorand, Solana, Tron, and Hashgraph blockchains. Its need for more public ledgers came in the wake of Ethereum’s unrealistic fee models that, in some cases, have witnessed people paying $80 to send $5 across the chain.
Avalanche, which emerged as Ethereum’s top competitor with a multi-chain scalability model, therefore became an eye candy for speculators. Meanwhile, AVAX, which serves as governance and staking token to run the Avalanche ecosystem, soared by over 2,360% year-to-date to trade near $90.
That somewhat explains why AVAX bulls jumped at the opportunity to buy the tokens after USDC’s integration into the Avalanche blockchain.
What technicals say about Avalanche(AVAX)?
As per technical setups, the AVAX price’s latest rebound came off a support confluence, i.e. the combination of multiple price floors. In addition, the retracement appeared alongside a rise in volume, which signals a strong upside momentum in the coming sessions.
Nonetheless, AVAX still grappled with a looming death cross between its 20-day and 50-day exponential moving averages (EMA-20 and EMA-50, respectively).
In detail, the formation occurs any time a short-term MA drops below a long-term MA, signaling selling pressure. Nonetheless, AVAX’s EMA-20 moved sideways rather than plunge down and avoided the Death Cross, saving some opportunities for bulls to reclaim the short-term upside sentiment.
Additionally, AVAX sought assistance from the resistance-turned-support bar at $87.
However, the Avalanche token still has a resistance trendline to conquer. AVAX coin retested the latter on multiple occasions since Nov 22. The upcoming sessions will show if the token can break above it and possibly retest the trendline as support, strengthening the bullish incentive.
Experts take
Some experts agree on an optimistic scenario for the platform in the upcoming quarter. For example, Michael van de Poppe, the chief executive of consulting company Eight Global, was bullish on Avalanche. The analyst claimed that the DeFi platform could be a strong competitor for Ethereum in 2022, given Avalanche’s lower fees and fast transactions.
Also read: Avalanche (AVAX) coin flips Dogecoin and Shiba Inu to enter the top 10 list.
In his video, the executive pointed out that Avax price could potentially drop back to $55. However, that fact shouldn’t throw off investors, as it could constitute a profitable market entry point. The analyst also acknowledged AVAX’s dependency on the climate across the market.
However, the Avalanche ecosystem as a whole saw a slight decline in total value locked (TVL). After peaking at $13.7 billion on Dec 1, the DeFi platform’s TVL shaved off 21% in two weeks and stood at $10.8 on Dec 15, complaint with the broader market tumble.
Also read: Avalanche falls 34.3% below recent ATH, tests key support level
Meanwhile, as mentioned above, the AVAX Coin price benefitted in the previous two days, and the token changed hands at $91 in the Wednesday session.
