AVAX stands out against altcoins for its new highs Where is it going?
The AVAX token, belonging to the smart contracts project, Avalanche, is one of the digital assets that has had the best trend since the beginning of November, being bullish and seemingly unstoppable. Even when the crypto market is bearish, AVAX has made new highs, which may be due to the arguments we will mention below.
Before, it is worth noting that the token price at the time of writing is $ 132.11, recording a profit in the last 24 hours of 11% and accumulates a rise of 36% in the last seven days, as we see from CoinMarketCap.
What is happening with AVAX, why does it go up?
The Avalanche ecosystem continues to grow despite the multiple downturns that have been seen in the market. This recent happening does not appear to be a drawback for the current trend held by the AVAX token. A sample of its massive adoption can be seen in the infographics shared through Twitter by Coin98.
The ecosystem has grown so much, it’s amazing to look at it even just 6 months ago! pic.twitter.com/nWeCJQ3664
– AVAXCoins NFT 🔺(@AvaxCoins) November 9, 2021
In addition, the director of DeFi at Ava Labs commented days ago in a tweet published on November 15 that the numbers of active addresses have multiplied by x20 during the last three months, showing once again the rapid growth of Avalanche. And last but not least, we also have news from Binance.US.
From Binance’s right arm, Binance.US commented that it would already be possible to trade AVAX from the platform that exposes cryptos to US citizens; The token began trading on November 18 on the exchange house with the pairs AVAX / USD and AVAX / USDT.
– Binance.US (@BinanceUS) November 17, 2021
Additionally, multiple positive announcements for the project have been posted on Twitter, with the latest one to highlight is from Kyle Davies, Co-Founder, and Chairman of Three Arrows Capital. He commented through a tweet that during the next few months, it would not be surprising if AVAX continues to expand in the DeFi sector for at least a period of 90 days.
Undoubtedly, as a fundamental of the token, the technical scenario remains bullish, but we must be attentive to the corrections.
Analysis and preview in a 4-hour timeframe
In the 4-hour time frame, the AVAX token has a fairly healthy uptrend, where it is appreciated that traders and investors take profits and reinvest. This uptrend is supported by a high volume of transactions, where great interest in the token is appreciated.
However, we see that the digital asset is overbought; The ENV channels suggest this since the candles are above and outside it. However, we note that sales have started, which would confirm the correction, which is also supported by a bearish engulfing candle.
The RSI, for its part, is at extreme levels of overbought, indicating that market sentiment may change, and we must be vigilant because there will be profit-taking by investors who bought AVAX at the support at $ 98 or much earlier.
The key supports to watch out for are:
You should take the information provided in this content for informational purposes only, not in any way intended to encourage the purchase/sale of financial assets.