The Avalanche price has risen in the past three straight days as investors attempt to buy the dips. AVAX is trading at $102, which is about 41% above the lowest level this month. It has a total market capitalization of more than $24 billion, which is remarkable for a platform that was launched in 2020.
Buying the dip?
The world is going through significant shifts as most industries transition from centralized platforms to decentralized ones.
For example, an industry like finance that was fully centralized has now become more decentralized. Decentralized Finance (DeFi) is an industry that enables people to do most things that they could not do in a centralized universe. One can borrow using DeFi platforms like Aave and trade using DEXes like Uniswap.
To achieve full scalability and speed, developers are in a constant need for quality platforms. For a long time, Ethereum was the go-to platform for the development of decentralized autonomous organizations (DAOs). However, Ethereum is widely known for its slow speed and high cost of transactions. It also lacks interoperability features.
This is where Avalanche and other Ethereum-killers come in. Avalanche is a blockchain platform that enables developers to build quality apps. It is widely known for its blazingly fast speeds and ease of use. Also, it is environmentally friendly since it is a proof-of-stake network.
In the past few months, the Avalanche price has jumped substantially as more developers have embraced the network. Indeed, according to DeFi Llama, there are now about 97 DeFi applications built using Avalanche. They have a total value locked of more than $11.6 billion, making it the 5th biggest platform.
This trend will likely continue as the decentralized industry grows. Most importantly, the Avalanche Rush program will play an important role by providing financing to developers.
Avalanche price prediction
The daily chart shows that the AVAX price rose to an all-time high at $150.90 in November. It then erased some of those gains and moved to a low of $71. Now, it has erased some of those losses and is currently trading at $102.
It is still slightly above the 25-day and 50-day moving averages. It also seems like it has formed a small double-bottom pattern. Therefore, the Avalanche price will likely keep rising as bulls target the next key resistance at $150. This view will become invalid if the price declines below the key support at $80. This is in line with my previous AVAX forecast.
