Avalanche (AVAX) Encounters Sell-Off – Price Analysis

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  • AVAX weakens from its higher highs.
  • The new coronavirus variant scares investors.
  • Avalanche has its massive support of $100.

Avalanche (AVAX/USD) encounters price weakness after recording its highs beyond $146. However, the altcoin plummeted to $101.4 on November 21. For now, the pair has its price at $107. Technicals show that Avalanche entered a bearish market, and the altcoin has higher chances of falling.

A Dapps Platform

Avalanche is among the fastest smart contracts networks in the crypto space. The platform allows developers to build Dapps, and Avalanche can handle over 4,000 transactions every second. That is according to Avalanche’s official website. It has many validators to secure activity in its proof-of-stake network.

Avalanche is compatible with Ethereum apps, assets, and tooling. Moreover, introducing ‘smart’ contracts on Avalanche is cheaper than what Ethereum would cost. The platform also allows developers to create their virtual machines and command how the ecosystem operates.

Most projects already partner with Avalanche, popular ones including Nexo, Huobi, Celer, Bitfinex, Binance, Ankr, and Aave. AVAX is the token powering the Avalanche network. The crypto touched its record high past $146 on November 21.

However, the alternative coin saw its price weakening since then. If you plan to invest in this cryptocurrency in the coming days, beware that the token has a higher chance of plummeting. For now, the crypto space sees pressure following the updates of another coronavirus variant that might trigger global lockdowns.

Saxo Bank equity strategy head Peter Garnry added that the markets reacted negatively with no one knowing whether the vaccines would ensure effectiveness with the new variant, translating to a possible economic hit.

$100 Acts As Massive Support

Avalanche recorded impressive movement during November’s 3rd week. That had the token’s price surging past $146. According to technicals, AVAX trades inside a bear market, and if it declines under the $100 support, it will present a massive ‘sell’ signal. The crypto has its following footing at $90. However, if the upcoming sessions see Avalanche closing above the resistance at $130, the coin might explore levels past $140 once more.

Final Thought

Avalanche weakened from its latest highs past $146 recorded on November 21. Meanwhile, technicals suggest that AVAX entered a bearish market. The altcoin might decline under the support at $100, and it might be that time to buy the dip.

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