Why is Avalanche (AVAX) Still Soaring While Other Cryptos Dip?
Avalanche (AVAX) is one of the few cryptocurrencies trading in the green on Wednesday, registering a daily gain of over 11%, even as its peers attempt to recover the previous session’s losses. At the time of writing, AVAX/USD is trading around $52.60.
Powering the strong bullish move is a recent announcement by the Avalanche Foundation that leading DeFi protocol SushiSwap is making the switch to its ecosystem. With a TVL of over $5 billion, the incorporation of SushiSwap into its $180 million DeFi incentive program titled ‘Avalanche Rush’ comes a few days after other players in this space, Aave and Curve also joined the program.
Created by Ava Labs, Avalanche is a PoS blockchain network that claims to have a TPS of 4,500 and boasts superior security in addition to its high speed data transfer capabilities. Although its mainnet launch took place about a year ago, it has been in the spotlight over the past seven days, with its native token AVAX rising by almost 130%.
In addition to the addition of SushiSwap to its DeFi incentive program, the bullish moves in Avalanche have received additional support from ForceDAO’s announcement to launch structured products and stablecoin-based strategies on its network. The collaboration will enable ForceDAO to develop and deploy several DeFi products focused on infrastructure technology, analytics and investment strategies, driving up greater interest in the blockchain among institutional and large scale investors.
Key Levels to Watch
On the 4-hour chart of AVAX/USD, we can see a strong bullish bias among moving averages and the momentum indicator. Although, the MACD indicator does signal some interest among sellers as well at the moment.
Avalanche’s price is holding well above the pivot point at $37.46 and it looks like buyers are getting ready to test the immediate resistance at$56.52. A successful break past this can take AVAX above $60 until traders find resistance again at $69.37.
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