The Avalanche price has bounced back in the past two straight days after it crashed hard during the weekend. AVAX, its native token, is trading at $93, which is about 25% above the lowest level during the weekend.
AVAX rebound
Avalanche is a leading smart contract platform that enables developers to build decentralized autonomous organizations (DAOs) and other web3 products. Developers have used it widely to build products like Decentralized Finance (DeFi) apps and non-fungible tokens (NFTs).
The platform’s developers wanted to provide developers with a climate-friendly and fast platform to build applications. It can process more than 4,000 transactions per second, which is about double that of Polygon. Ethereum handles less than 20 transactions per second.
There are several reasons why Avalanche has rebounded. First, the network has continued to see more applications. According to DappRadar, many of its leading platforms like TraderJoe, Pangolin Exchange, and Lydia Finance have seen users rise by double-digits in the past 24 hours. Other companies that are building using Avalanche are DeFi Kingdoms, FireBlocks, and Apricot.
Second, the AVAX price is rising as the Moralis Avalanche hackathon gets underway. The hackathon is a collaboration between the Avalanche Foundation and Moralis. Contestants will have the possibility of pitching their products to well-known venture capital firms like Three Arrows Capital, Republic Crypto, and GBV Capital. They are also competing for a prize money of $500k.
This is one way in which Avalanche is incentivising users to its network. The other one is the Avalanche Rush program, where the foundation has allocated $100 million to lure developers.
Avalanche price prediction
In my AVAX forecast last week, I noted that there were two possible scenarios for Avalanche. The first scenario was where the coin jumped to an all-time high. The other view was that Avalanche price would decline and retest $80 and then resume the bullish trend.
The second scenario is what happened as the Avalanche price dropped to about $80 on Saturday and then resumed a bullish trend. It is now along the 50-day moving average and slightly above the 100-day MA. It has also formed a bullish engulfing pattern, which is usually a positive sign.
Therefore, for now, I am cautiously optimistic about Avalanche since this rebound could be a dead cat bounce. A more bullish view will be confirmed if it moves above the resistance of $100.
