The Avalanche (AVAX) price has tracked the performance of other cryptocurrencies in the past few days. The token is trading at $31.35, which is close to this month’s low of $22.50. It has dropped by more than 78% from its all-time high, bringing its total market cap to more than $8.7 billion.
AVAX remains rangebound
Avalanche is a fast-growing platform that seeks to become a leading player in the decentralized industry. The platform, which was launched just a few years ago, has been used widely to build all types of applications in the industry.
It has been used to build apps in the Decentralized Finance (DeFi) space. Some of the most notable names that have moved to Avalanche are Sushi, Benqi, Curve, and ParaSwap among others. Similarly, it was recently integrated into Arweave, meaning that users can pay for their storage using the AVAX token.
Avalanche has more uses in the non-fungible token (NFT), gaming, and the metaverse industries. Developers love it because of how quick the network is. Unlike Ethereum, it has a transaction per second rate of 4,000 transactions. Similarly, it is more versatile and has more room to grow.
Here’s how to buy Avalanche.
Recently, however, the Avalanche price has been on edge as investors continue worrying about the safety of their digital assets. The most recent concern was the collapse of Terra and its ecosystem. As such, many DeFi holders are questioning whether their tokens could disappear too.
The Avalanche price has also declined as investors embrace the new normal on monetary policy. The Federal Reserve has already hinted that it will deliver a series of rate hikes in the upcoming meetings. It will also start reducing is giant balance sheet.
Other central banks are taking note. In a blog post on Monday, Christine Lagarde warned that the ECB will start hiking interest rates in July and then leave negative rates in September.
Avalanche price prediction
The daily chart shows that the AVAX price has been in a strong bearish trend in the past few days. In this period, the coin has moved below the 25-day and 50-day moving averages while the Stochastic Oscillator has moved above the oversold level. The coin has also formed a bearish pennant pattern.
Therefore, the outlook for the coin is bearish, with the next key support level being at $25. A move above the key resistance level at $35 will invalidate the bearish view.