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Avalanche rose by 4% on Monday.
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Avalanche onboarded Alibaba Cloud and will use the latter’s suite of products.
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The cryptocurrency remains largely bearish.
Avalanche price (AVAX/USD) gained more than 4% on Monday amid positive cryptocurrency news. A bear momentum has subdued the token of the Avalanche protocol for quite a while. Monday’s rally could offer hopes that AVAX will overcome a projected drop to below $10. The cryptocurrency traded at $14.07 as of press time.
Investors may have rekindled hopes for the DeFi protocol days after getting the nod from Alibaba Cloud. The subset of e-commerce giant Alibaba expanded its developer tools and cloud technology to the Avalanche blockchain. Avalanche users will be able to build products, launch validator nodes, keep custody, and share resources via Alibaba Cloud in Asia. The developers can also use the suite of products offered by Alibaba Cloud to enhance their products and meet demand.
The latest announcement comes amid a slow DeFi activity that has cost platforms such as Avalanche. According to data aggregator DefiLlama, the total value locked on DeFi protocols stands at $42.83 billion. The volume is a decline from $54.11 billion in the last 30 days. It also compares to $170.01 billion TVL at the start of the year. With the low activity, tokens of associated platforms have crashed sharply this year. AVAX has subsequently lost 90% of its value from the all-time high.
AVAX stays bearish despite an improved momentum
From the technical outlook, AVAX price is rising along the 20-day moving averages. The MACD indicator shows improving momentum for the cryptocurrency, although it is still bearish.
The longer-term market bias is bearish for AVAX. The 50-day MA is the next level to watch. A recovery above the MA could take AVAX to $19 and $21 next.
Should you buy AVAX now?
Despite the latest gains, buying AVAX now could be premature. The bear market remains in place, despite the latest recoveries. Should buyers fail to capitalise on the current gains, $10 remains in sight for a potential price bottom.
Where to buy AVAX
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Celebrated DeFi platform Avalanche (AVAX/USD) is having a rough time this year. Having traded at a high of $150 in November 2021, it has failed terribly this year. From its all-time high, AVAX has now crashed by nearly 93% to its current $11.7 price. The cryptocurrency is now headed to $10, a crucial level that could spell stability or doom for the token.
AVAX’s boom in 2021 reflected a growing interest in DeFi. The platform provides tools to let users launch decentralised applications. However, a spiral of activities, including the Terra Luna crash and economic tightening, has hit the blockchain hard. The FTX crisis has been the last blow that has accelerated the bear market.
AVAX tumbles as cryptocurrency heads to an important support zone
AVAX lost an intraday of 1.17% to take losses in the week to 12%. The cryptocurrency was, however, trading with slightly higher volumes of 22%.
AVAX prints a bear momentum heading to the $10 support. The cryptocurrency is in a clear system of lower lows and lower highs.
On the weekly chart, AVAX lost the $15 level, paving the way for further decline. The MACD indicator shows the bears are still in control. The RSI shows AVAX is nearly oversold.
Why could $10 be crucial for AVAX?
AVAX at $10 would mark a crucial make-or-break level. The level would be the lowest for the cryptocurrency since June 2021. AVAX has defended this level for two years now. The $10 zone was defended in June 2021 when AVAX initiated a bullish recovery. A price boom followed.
Should AVAX break below $10, we could head to the lows of 2020. The next price in the range will be $4.3.
Where to buy AVAX
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Avalanche (AVAX/USD) has lost 90% of its value since the November 2021 high. The token has been falling alongside other major cryptocurrencies in the bear market. The bear momentum is still high, with the cryptocurrency trading at $15. In the past one week, AVAX has lost more than 5% and is looking to head to $10. What’s happening?
Avalanche has been touted as an alternative platform to Ethereum for DeFi and NFTs. However, the two nascent blockchain sectors have been hit this year. According to data by Dune Analytics, NFT’s weekly trading volume has dropped by a massive 98% this year. The total trading volume at the end of January 2022 was $6.2 billion but now stands at $114.
NFTs and DeFi decline has been a significant blow to blockchains like Avalanche. That’s because the blockchain had crafted a name around the evolving sectors. Consequently, it may take time before investors flock back, suggesting that a bear market could last longer. Going by the recent decline, bears are in control of AVAX, with a lower price on the horizon.
AVAX price outlook as momentum weakens
Source – TradingView
The daily chart shows AVAX trades on a system of lower lows and lower highs on a weak momentum. The MACD indicator is deep in the bear zone.
At the current level, AVAX is trading at a potential pivot point. However, momentum is weak, giving bears a chance to take the cryptocurrency lower.
What next for AVAX?
With the weak momentum, we rate a reversal chance at $15 very low for AVAX. The cryptocurrency is not a buy since it may continue to slide, finding support at $10. The support is crucial since it marks the zone where the crypto boom started in 2021.
Where to buy AVAX
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Uphold
Uphold is a platform which has over 50 cryptocurrencies to choose from.
It’s users can make crypto trades with a bank account, credit card or crypto debit card. It has variable fees and allows users to automate trades.
Users who are on Brave’s internet browser can also earn BAT tokens based on their browsing habits.
Good Morning Everyone!
Credit Suisse, one of the world’s largest banks is in trouble. Stock trading at record low, credit default swaps at 2009 highs and CEO says bank is at a “critical moment”. Buckle up another bumpy week ahead!
Prices as of 4 pm EST, 9/30/22; % YTD
MARKET UPDATE
U.S. stocks heading for their worst performance since the 2009 financial crisis
TSX holding up much better
Investors are asking: Are rates and the U.S. dollar peaking?
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Investors waiting for the sell side to cut their 2nd half 2022 and 2023 estimates
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New year-to-date lows to start Q4
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Investors positioned defensively: Low cash levels and low hedge fund leverage
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The bond market is calmer to start Q4, which should help equities stabilize
HOPE
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Seasonality is reason for HOPE
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Mid-term Q4 quarters tend to have good returns historically in this time period
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The S&P 500 is 10% below its 63-day moving average. It’s only crossed that threshold 4 times in the past 10 years.
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Stocks and Bonds have never BOTH been down year-over-year in 3 consecutive quarters – EVER
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Perhaps, earnings season will turn the market around
10yr 3.7%’
US$ 112 up 14% in 2022, FX will squeeze U.S. earnings
C$ 72.8
VIX 31
Crude $84 +5%
Earnings
CRYPTO UPDATE
Solana SOL/USD suffers 4th major outage
Former Celsius CEO Alex Mashinsky: confirmed scumbag
Digital asset flows (into popular crypto ETPs, mutual funds, and OTC trusts) last week
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Third consecutive week of (low) inflows
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Bitcoin (3-week streak) and Ethereum (2-week streak) led
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Broad outflows in altcoins
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Avalanche integrated the Layer-2 solution Boba Network on Wednesday.
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AVAX trades the $17 support zone
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Future recoveries depend on market sentiment
Avalanche AVAX/USD trades at $17.34, a level it has held since September 18. The price level has been the lowest since early July. At the bottom level, buyers are showing interest after days of consolidation. At press time, the token was up 2.07% in the last 24 hours. The gains were, however, not enough to erase 7.94% losses in the past week.
Avalanche welcomes Boba Network
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Multi-chain Layer-2 chain Boba Network announced entry into Avalanche on September 21. The integration will see Boba help Avalanche meet the scalability demands. Boba lauded Avalanche for its fast and low-cost transactions and eco-friendly solutions. Following the integration, Biba will become Avalanche’s first L2.
Avalanche price and prediction
The integration of the Boba network adds a positive sentiment to AVAX when the sentiment is weak. That helped the token recover slightly amid an interest rate hike by the Federal Reserve. However, we find AVAX between a rock and a hard place as momentum is weak at the support.
Source – TradingView
A technical outlook shows that AVAX’s in a downtrend. The price has been moving in a pattern of lower highs and lower lows. A recent MACD bearish crossover speaks of the weakening momentum. The moving averages above offer resistance.
Concluding thoughts
Despite the Boba Network integration, AVAX is in a bear market and is not a recommended buy. Buyers may keep optimism of recovery at the $17 support. However, with the weak sentiment, a lower price is possible.
If AVAX holds the support intact, a wave of consolidation may follow. That will enable the token to gather sufficient momentum to go higher. The cryptocurrency has a minor resistance at $22.