The price of Avalanche has fallen sharply over the past few days as geopolitical and currency risks increase. AVAX, its native token is trading at $77.25, almost 20% below its high this month. The price is at its lowest since February 6.
Avalanche climbs the ladder of smart contracts
Avalanche is a leading smart contract platform that helps developers build quality decentralized applications across industries.
The network’s goal is to become a faster alternative to Ethereum and Binance Smart Chain (BSC). Indeed, the metrics show that the network has higher speeds than Ethereum. It can handle over 4,000 transactions per second (TPS).
The transaction cost is also significantly lower than other coins. A typical transaction is usually less than 2 cents.
As a result, the number of apps created using Avalanche’s technology is growing at a faster rate. According to DeFi Llama, there are now around 165 apps in the Avalanche ecosystem. These apps have a total value locked (TVL) of over $10.5 billion.
This makes it the fourth largest platform in the world after Ethereum, Terra and Binance Smart Chain. Some of the biggest apps created using Avalanche are Aave, Trader Joe, Benqi, Wonderland, and Beefy Finance, among others.
The Avalanche ecosystem will likely continue to grow over the next few months thanks to the Avalanche Rush program. In it, the developers distribute over $150 million to developers building in the ecosystem.
One of the newest platforms to come to the Avalanche Network is GMX, a platform that provides liquidity pools. The developers have also launched UST in the Avalanche ecosystem.
Yet, while the network shows some growth, there are external factors that affect the Avalanche price. For example, there are geopolitical risks regarding Ukraine and the fear of high interest rates in the United States.
Avalanche Price Prediction
The four-hour chart shows that AVAX price has seen a strong bearish sell over the past few days. Along the way, the coin managed to move under the lower side of the ascending channel shown in red. It also broke below the 25- and 50-day moving averages, while the MACD and Relative Strength Index (RSI) declined.
Therefore, it is likely that the price of Avalanche will continue lower as the bears target the next key support at $65. On the other hand, a move above the key resistance at $85 will invalidate this view.