The Avalanche (AVAX/USD) price was in the green on Wednesday even as other cryptocurrency prices remained under pressure. The AVAX token is trading at $63.42, which is about 20% above the lowest level this week.
AVAX holds steady
Avalanche is a blockchain technology that helps developers build decentralized applications of all types. In the past few months, the Avalanche ecosystem has grown to include games, non-fungible tokens, and even Decentralized Finance (DeFi) platforms.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
This growth has pushed the AVAX price substantially higher. It has risen by more than 400% from the beginning of August, making it one of the best performing networks.
At the same time, its ranking among cryptocurrencies has also improved. It has moved from the 50s to currently in position 13. Other coins whose parabolic rally has pushed them to the top are Solana, Dogecoin, and Binance Coin.
The Avalanche price has risen because of the overall growth of its ecosystem. For example, data compiled by DeFi Llama shows that about 34 DeFi platforms are already in its ecosystem. This makes it the fourth platform after Ethereum, Binance Chain, and Polygon. Its DeFi ecosystem has a total value locked (TVL) of more than $2.7 billion. Some of the biggest DeFi apps on Avalanche are Benqi and Trader Joe.
Meanwhile, analysts expect that the platform will keep growing. For example, last week, Avalanche Labs raised $230 million from a group of investors led by Dragonfly and CMS Holdings. The company will use the fund to provide developer incentives of building in the platform.
Later today, the Avalanche price will react to the Federal Reserve decision. In theory, a hawkish Fed should be bearish for Avalanche and other cryptocurrency prices.
Avalanche price prediction
The four-hour chart shows that the AVAX price has been in a bullish trend in the past few weeks. Like all cryptocurrencies, it declined sharply this week as the Evergrande crisis continued. It is still about 16% below the highest point this year.
The coin is slightly above the Ichimoku cloud and the 25-day and 50-day exponential moving averages (EMA). It is also above the important support level at $58.83. Therefore, it seems like there is momentum going on that will push the price substantially higher.
67% of retail CFD accounts lose money