Quick overview
- Dozens of cryptocurrency tokens experienced significant declines on Monday, while Avalanche (AVAX) saw a nearly 2% increase due to rising stablecoin supply.
- Bitcoin, Ethereum, and other major cryptocurrencies fell over 2% amid ongoing geopolitical tensions in the Middle East.
- Avalanche’s recent growth, despite a 71% decline over the past year, suggests strong upward potential and increased investor interest.
- Analysts predict that Avalanche could surge to $10.00 in the coming weeks, supported by a 7% rise in trade volume and a growing market cap.
Dozens of cryptocurrency tokens fell on Monday as the market felt severe selling pressure, but Avalanche (AVAX) surged by nearly 2% on rising stablecoin supply.
Bitcoin (BTC), Ethereum (ETH), and many other crypto coins fell more than 2% on Monday as fighting continued in the Middle East between the United States and Iran. The conflict added pressure to an already bearish cryptocurrency market and put leading coins into dangerous positions. Avalanche broke the mold, however, and pushed back against trends with a 1.93% increase.
Why is Avalanche climbing when practically all other crypto coins are falling? The answer is that the stablecoin supply suddenly jumped, moving up by 48% over a period of one week. This tells us that upward pressure is incredible and investor interest is rising rapidly.
Avalanche’s High Resistance Test Is Incoming
As Avalanche moves upward, we should see the price test a higher resistance level. The AVAX price is much higher than the mid-May low point. Then, the coin fell to $584, but it is currently at $6.52 (AVAX/USD). That growth is better than we have seen for most of the crypto market, and this indicates a trend toward long-term growth.
However, there is a disturbing trend when we pull back and look at the 12-month data. In that span, Avalanche has fallen 71%. Much of that loss occurred since November of last year, when the entire crypto market sank drastically. Since that time, most crypto tokens have had a tough time regaining lost ground. In Avalanche’s case, though, there have been several months of growth recently, and that indicates excellent upward potential.
Because Avalanche has been able to climb when other coins are falling, many analysts are confident that this coin will outperform many other tokens. In the coming weeks, Avalanche could see a tremendous surge that pushes it back up to $10.00.
The coin’s trade volume rose 7% over the last day, and the market cap has grown to $2.8 billion. These indicators, along with the excellent stablecoin performance, reveal serious growth potential, and investors should not overlook this coin just because it is not in the top ten cryptos. They should bear in mind that Avalanche is capable of moving higher than $20 and that the right factors at the right time could definitely push it that high again.
Timothy St. John
Financial Writer – European & US Desks
www.fxleaders.com