Being a relatively new-generation blockchain ecosystem, Avalanche has made multiple improvements to its transaction capabilities adding numbers as high as 6500 TPS. Since this blockchain offered similar scalability offered by Ethereum, the outlook of AVAX exploded in terms of market position and gains.
The blockchain was further rumored to be working on an interoperability system to work as a bridge between transactions made against ETH and AVAX.
The current Avalanche offerings include its dedicated chain for catering to unique consumer needs, Exchange Chain or X Chain or transaction of funds, Platform Chain or P Chain to stake AVAX tokens for validation purposes, and earning in AVAX rewards. It also offers a third chain meant to cater to smart contracts’ needs and is called C-Chain or Contract Chain.
Since the name of each chain is derived from the kind of transactions it’s working on, AVAX has become a more simplified platform for new blockchain users. The token valuation for this blockchain can surpass ETH, despite there being a wide difference between the two.
Considering the young age of Avalanche, the development outlook for AVAX is much higher compared to Ethereum. Avalanche has showcased its inability to continue with a positive stance, especially with lower transaction volumes and RSI failing to continue residing in the overbought zones.
The regression trend shows attempts of the AVAX price to move upward, but other technical indicators are creating trouble for buyers. Can Avalanche attract buyers? Read our Avalanche coin price prediction to know!
On close inspection of the price action, we can witness a decline in the AVAX holding pattern since the crypto bear market began a year ago. 2021 was an emerging year for AVAX as the token values spiked from $10 to $140, while the prices plummeted from $140 to $13 in just a few months.
Since the high expectations from technology were at their peak during Covid waves, the easing pandemic has resulted in the decline of cryptocurrencies. Such a correlation indicates the possibility of AVAX being able to catch up to its peak values. The difference between the peak and the current price is tremendous, which would be highly unlikely to cover in a few months.
Improving blockchain usage and dependability seems to be the only way to improve the outlook of a service-focused blockchain such as Avalanche. On daily charts, the candlesticks are attempting to move toward positive territory, as seen from the regression trends.
While RSI has jumped from oversold levels to neutral stances, its outlook could take a drastic turn since MACD is showing a bullish crossover in the coming days. Despite the value of AVAX reaching the January 2021 levels, there doesn’t seem to be a fundamental weakness but one motivated by the dynamics of supply and demand.
Published at Thu, 24 Nov 2022 12:36:04 +0100