Falling below $30 on January 23 Avalanche While the price of (AVAX) was traded at $36 at the time of writing, it is currently above this level. According to Coingecko data, AVAX managed to surpass the level with a 4.63% increase in the last seven days.
However, this one, which ranks 9th in market value cryptocurrency The unit performed much better last year. AVAX has shown strong performance among Decentralized Finance (DeFi)-based tokens in 2023. Its price rose to around $50 for a while, but fell back as market participants began to realize their profits.
Meanwhile, the 4-hour chart shows that the bulls are making efforts to push AVAX above $40. However, these attempts are likely to be rejected at $36.75. Because AVAX’s uptrend has been rejected in this region on two separate occasions before.
Avalanche’s Target $40
The first drop on January 30 caused AVAX to drop to $32. Then, a second drop occurred on February 2, which led to the token price falling to $34. Now, the bulls need to break the resistance.
A successful break of $36.75 could allow AVAX to reach the $40 psychological resistance. However, if the breakout fails, AVAX’s price could retreat to the $33.83 support level. Additionally, the Relative Strength Index (RSI) has increased to 61.95, indicating a strong level of buying momentum.
If the buying momentum continues to remain high, AVAX could surpass $36.75. From a bullish perspective, the price could surpass $40 in the short term. However, if there is a decline in the RSI, there is a possibility that the price could decline below $35.
Another indicator was the Moving Average Convergence Divergence (MACD). Currently, the MACD is positive and indicates bullish momentum. If this value remains in the green, AVAX could surpass its yearly high of $43.40. This could indicate a strong uptrend for AVAX.
A summary of the technical view shows that AVAX is undervalued and has the potential to perform much better. In terms of Total Value Locked (TVL), Avalanche’s TVL was recorded at $818.93 million, according to DeFiLlama data.
Koinfinans.com As we reported, TVL measures the total amount of digital assets locked in a protocol. When this metric increases, participants are generally more willing to invest their assets in this protocol as they perceive the protocol as more trustworthy. Therefore, increasing TVL may indicate the reliability of the protocol and users’ confidence in their return expectations.
However, a decrease in TVL indicates a different situation. TVL for the Avalanche remains very close to the levels over the last 30 days. This shows that market participants are uncertain about whether they will contribute to the overall health of the network. Such uncertainties could shake the confidence of investors or users and negatively impact the long-term success of the protocol. Therefore, it is important to closely monitor developments and changes regarding the Avalanche ecosystem.
