- Avalanche price has crawled back in the past few days.
- It has formed a bearish pennant pattern on the 4H chart.
Avalanche price has moved sideways even as speculation emerges that ApeCoin could be migrated to its platform. AVAX is trading at $33.08, which is 48% above the lowest level last week. The coin has a market cap of more than $8.9 billion, making it the 12th biggest cryptocurrency in the world.
Yuga Labs could move ApeCoin to Avalanche
Avalanche is a leading blockchain platform that prides itself for its blazingly fast speeds of over 4,000 transactions per second (tps).
The network has been embraced by many developers in all industries like DeFi, non-fungible tokens (NFT), and games.
Now, there are signs that the network could gain another major addition to its ecosystem. Sources say that Yuga Labs, the owner of ApeCoin, is considering moving to its ecosystem.
The decision to move from Ethereum to either Avalanche or Flow has been necessitated by the recent major outage in its ecosystem. The outage happened when Otherside led to a major congestion in Ethereum’s network. The outage led to sharply high gas fees and outage of other popular platforms, including Etherscan.
Learn more about how to buy Avalanche.
Avalanche has been having major challenges in the past few days after the collapse of Terra’s ecosystem. As a result, most investors have dumped their DeFi tokens after realizing that their investments could go to zero.
As a result, the network’s total value locked (TVL) has dropped by about 50% in the past 30 days. It currently stands at $5.1 billion, which is lower than its all-time high of almost $12 billion. Some of the worst performers are Platypus Finance, Trader Joe, and Curve.
Avalanche price prediction
The four-hour chart shows that the AVAX price has been in a tight range in the past few days. A closer look shows that the coin has remained below the 25-period and 50-period moving averages.
Most importantly, the coin has formed a bearish pennant pattern. In technical and price action analysis, a pennant is usually a bearish sign. The stochastic oscillator has moved to the middle level.
Therefore, the outlook of Avalanche is lower considering that the pennant is nearing its confluence level. As such, there is likelihood that the coin will have a bearish breakout, with the next key support level being at $25. A move above the resistance at $37 will invalidate the bearish outlook.
