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Avalanche is on a mission to scale DeFi and create a more accessible, decentralized, and cost-effective ecosystem. The recent developments surrounding the distributed ledger start-up have led to a spike in buying pressure, pushing AVAX toward higher highs.
Avalanche’s Network Utility Expands
Avalanche is riding a bullish wave.
AVAX has seen its price skyrocket by 263% over the last month. The twenty-seventh largest cryptocurrency by market cap increased from a low of $9.30 on Jul. 20 to hit a high of $33.80. Roughly 30% of the entire price appreciation occurred in the last three days.
The bullish momentum that Avalanche has seen is based on solid fundamentals. The distributed ledger project recently partnered with legacy trading cards and collectibles company Topps to build a marketplace for NFTs. Additionally, the Avalanche Foundation announced a $180 million DeFi incentive program dubbed “Avalanche Rush” this week.
According to Emin Gün Sirer, Director at the Avalanche Foundation, the new initiative aims to bring blue chip DeFi applications running on Ethereum to Avalanche, starting with Aave and Curve Finance. In a blog post, he wrote:
“Avalanche Rush will be a showcase for users to see the power of Avalanche, and dive into a vibrant community at the cutting edge of decentralized finance. The combination of Aave, Curve, and Avalanche will create really interesting synergies that DeFi users will be excited about.”
While market participants continue to celebrate the significant strides that Avalanche is making to expand the network’s utility, AVAX could be headed for a correction.
AVAX Traders Ready to Sell the News
The Tom DeMark (TD) Sequential indicator suggests that a spike in profit-taking is underway. It recently presented a sell signal in the form of a green nine candlestick on AVAX’s 12-day chart. The bearish formation forecasts a one to four 12-day candlesticks correction before the uptrend resumes.
A spike in selling pressure that leads to a decisive break of the $28.90 support level could trigger a sell-off among investors. Under such conditions, AVAX could see its market value drop toward the next crucial interest area at $24.70.
It is worth noting that a 12-hour candlestick close above the $35 resistance level might have the strength to invalidate the pessimistic outlook. If this were to happen, AVAX would likely advance towards $41.