Avalanche price is down 5 percent in today’s trading session, continuing its long-term aggressive down move that has been going on for months. The drop also comes after three consecutive bullish trading sessions, which have seen the price rise 12 percent.
What is avalanche?
Avalanche is one of the largest cryptocurrency projects in existence today. Its market cap is over four billion, making it the 17th largest crypto. The data also shows that the project has a total value of over $2.7 billion. Since going live in September 2020, the project has continuously dominated the DeFi ecosystem.
Avalanche uses two sets of consensus protocols known as classic and Nakamoto to work. The classic protocol is fast and low-maintenance. But unfortunately consensus is hard to scale or decentralize. On the other hand, the Nakamoto protocol is able to offer decentralized, robust and scalable blockchains.
Avalanche also has a native cryptocurrency called AVAX, which has three use cases: the token can pay for transactions; It can be staked out and used as the basic unit of account between the multiple subnets deployed on Avalanche.
Avalanche Price Prediction
Despite being one of the most innovative projects on the markets, the past few weeks have been aggressively bearish. In June, Avalanche lost 35 percent of its value. The aggressive downtrend was also evident in May, when the crypto lost 53 percent of its value. In July, the aggressive move lower appears to have continued, with prices already down one percentage point for the month.
In today’s trading session, prices are already down 5 percent. The decline is a continuation of the long-term downtrend that I expect to continue over the next few trading sessions. As a result, there are high chances of the prices falling and trading below the psychological $15 level.
It is also likely that prices will trade near the $10 price level in the next few trading sessions. However, my strong bearish trend analysis will be invalidated if prices reverse and trade above the psychological $20 level. At this point, it is very likely that we will see an upward move.
Avalanche daily chart