Avalanche AVAX/USD has advanced from $13.8 above $55 since the beginning of August, and the current price stands around $46. Technical indicators remain bullish, and if the price jumps again above $50 resistance, the next price target could be around $55 or even above.
Fundamental analysis: Avalanche’s flexibility is positioning it to compete for DeFi market share
Avalanche is one of the fastest smart contracts platforms in the blockchain industry that allows you to build decentralized applications. Avalanche can process more than 4,000 transactions per second even without the security tradeoffs usually associated with low-latency chains.
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Adverse effects of slow smart contract blockchains are now a thing of the past, and if you decide to deploy smart contracts on Avalanche, it will cost you just a tenth of what they cost on Ethereum. Avalanche is fully compatible with Ethereum assets, apps, and tooling, and it is important to mention that the Avalanche Contract Chain supports the Ethereum Virtual Machine and its Solidity coding language.
New projects and DeFi applications are starting to interact with more traditional businesses coming on-chain, and Avalanche’s flexibility is positioning it to compete for DeFi market share.
“Avalanche aims to enable new systems defined by velocity, efficient use of capital, and innovation in new products and services that aren’t possible with the current wait times to finalize transactions. DeFi is certainly part of our motivation in the short term, with our long-term sights set on traditional finance,” said Ava Labs CEO Emin Gün Sirer.
Emin Gün Sirer also said that Avalanche would also support bridges to other networks for users to move assets between the networks; still, the main question among Investors is whether the AVAX is undervalued at the current price? Avalanche is a project with big potential, and according to technical analysis, AVAX continues to trade in a buy zone.
Technical analysis: Bulls remain in control of the price action
The cryptocurrency market continues to perform well in the first trading days of September 2021, Bitcoin is trading again above the $50000 level, and this situation also supports the price of Avalanche. If this positive trend continues, Avalanche could stabilize again above $50 resistance.
Avalanche currently trades around the $46 level, and it would be a strong buy signal if the price jumps again above $50 resistance. The next price target could be around $55 or even above; still, if the price falls below $40 support, we have the open way to $35.
Summary
Technical indicators remain bullish, suggesting that Avalanche will probably continue its positive trend; still, if the price falls below $40 support, it would be a firm “sell” signal. New projects and DeFi applications are starting to interact with more traditional businesses coming on-chain, and Avalanche’s flexibility is positioning it to compete for DeFi market share.
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