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1 Mar 2022

AVAX

Market Discovery of the most influent markets in the cryptocurrency world.

What is Avalanche (AVAX) and how does it work?

Avax, also known as Avalanche, is a blockchain solution that allows the building of fast and low-cost dapps that are compatible with Solidity. This allows the deployment of both public and private blockchain, suitable for the exact needs of any application. The native coin of the Avalanche ecosystem is AVAX, or AVAX coin, which can be staked by users in order to process transactions and secure the network, with minimal hardware requirements.
Originally set up in 2018, as an open-source programmable platform, Avalanche had three main investors in its early stages: IOSG Ventures, Leon Hillmann and High Naut Capital. More recently, in 2020, AVAX crypto had additional funding round receiving an amount that is currently undisclosed. The following year Avax made two investments, acquiring Pontem Network, a dApp framework for Facebook's Diem project, and Covalent, a solution for infrastructure problems intrinsic to the ways of blockchain adoption.

The Avalanche AVAX ecosystem offers a variety of projects belonging to the domain of decentralized finance (DeFi), digital securities, non-fungible tokens (NFTs), nodes, oracles, stablecoins, trading bots, wallets and more. Avalanche's own wallet, accessible through AVAX metamask extension, secure, non-custodial storage for AVAX assets. The avalanche network is where details such as transaction volume, network activity, the list of top assets, and the recent transaction can be checked.

The primary AVAX network has three sub-chains: the Exchange Chain (X-Chain), the Platform Chain (P-Chain) and the Contract Chain (C-Chain). Whilst the main goal of the network is to validate built-in blockchains, each of the three chains has some definite purposes to serve. Whilst the X-chain is for Avalanche consensus protocol, both P-chain and C-chain are for the Snowman consensus protocol. The X-chain is used to create and exchange assets. The P-chain coordinates validators and creates subnets, and the C-chain comes into use to execute EVM contracts and smart contracts. Overall AVAX allows Ethereum DApps that confirm transactions in an instant, overshadowing many of its competitors.

Coin Analysis

Last update 1/3/2022
Since its launch, AVAX Binance pairs have performed really well, growing exponentially over the years and netting a great return for traders of this coin; with AVAX BTC and AVAX USD being the most traded and better-performing pairs.

Avax originally launched on Binance for under $1 in late 2021 and saw a great spike the first week reaching a price of over $8.80. This didn't last long and during the following weeks, prices declined gradually until reaching a level of just below $3. However, just as 2021 AVAX price spiked and grew exponentially to over $60, marking a growth of over 1700% from the beginning of the year. This move was short-lived and saw prices yet again fall gradually to previous lower support levels. After prices failed to hold the most significant support level around $21.40, prices dipped as low as below $10, in mid-2021.
AVAX/BUSD weekly candle chart with supports, resistance and 20/50/100 EMA key level
AVAX/BUSD weekly candles chart
Similarly to the previous times, when prices reached rock bottom level, we saw a spike and rebound, with price level pushing AVAX above previous ATH into uncharted territory. It was in late July that the next bull run would start, extending into the autumn until a new peak was reached in November 2021. This was mainly due to the spike in Bitcoin price and all the crypto market as a whole. Similarly to in the past, after reaching this ATH prices retraced and dropped back to previous key support levels, initially falling straight through the 20EMA and bouncing on the 50EMA, and then trying to break over the former but getting rejected. Currently, AVAX price is still between the 20EMA and 50EMA trending downwards.

AVAX price prediction would suggest that Avax still has some bottoming confirmation to do, as it currently trends downwards. Previously its prices bounced on the 50EMA, however, it failed to regain the 20EMA, as this level acted as a resistance. AVAX price is likely trending towards the lower support around the 50EMA, which coincides with the price level of $55.9. Once its price has settled and lateralized over this level, it's likely to see a bounce, in the short term, and possibly a change in trend.
AVAX is available for trading on yanda.io dApp.

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Author: Matteo Poole
info@yanda.io