The cryptocurrency market is trying to decide what to do now after remaining bearish for most of November and suffering a downtrend late last week. As a result, the crypto market suffered some heavy losses, with the total market cap falling to nearly $2 trillion from $3 trillion in early November. The Avalanche coin also suffered some heavy losses, but it is now forming a bullish reversal pattern that is pointing up.
Avalanche Daily Chart Forecast – Will AVAX Resume Uptrend Anytime Soon?
Avalanche has been bullish since August, although the biggest move higher came in the first half of November when the crypto market started to reverse to the downside. AVAX/USD rose from around $10 in July to $146 by mid-November, up 146%, although we are currently in a pullback phase.
Bearish momentum in the crypto market caught up with Avalanche coin and dragged it lower. AVAX has now lost about half of its value and previously fell below $80, but an area of support has formed around this level that seems to be holding for the moment. Avalanche broke this level twice in the past few days, but the price closed above it both times at the end of the day, so support stands.
The 50 daily SMA is holding again as support for Avalanche
Also, the 50 SMA (yellow), which previously acted as support, is once again taking over this role. The stochastic indicator is also oversold, which means that the Avalanche pullback is complete. Now, Avalanche is showing buying pressure around $80, so we expect the uptrend to resume soon, assuming there isn’t another bearish leg in the crypto market.
Avalanche foundations look solid
Avalanche has done well as a blockchain company despite numerous competitors like Fantom, Tezos, Algorand, Ethereum, etc. Avalanche is developing a thriving ecosystem that has seen exceptional growth over the past two years. A number of NFTs are springing up on the Avalanche blockchain. The NHL’s New York Islanders are partnering with NFT platform Orange Comet to issue a series of non-fungible tokens (NFT) using the Avalanche blockchain. Also, last month, Cardaba, a play-to-earn game, launched on the Avalanche blockchain.
Another reason Avalanche has been bullish over the past few months has been its partnership with one of the Big Four consulting and accounting firms, Deloitte. Deloitte will use the Avalanche blockchain to improve “the security, speed and accuracy” of Federal Emergency Management Agency (FEMA) funding. Deloitte will build a more efficient platform for its disaster relief program.
According to Deloitte, they chose Avalanche for this endeavor because of its speed, transparency, and climate-friendly credentials. Avalanche can process 4,500 transactions per second (TPS) while Ethereum only processes 15-30 transactions per second. So the future is looking bright for Avalanche, and this pullback is a good opportunity to go long on this cryptocurrency. We are considering buying AVAX/USD – you can follow us on our live forex signals page.
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