Avalanche price (AVAX) is looking very bullish after a recent breakout from a technical pattern. The digital asset is up more than 30% from its monthly lows and is eyeing more upside as the bulls gain momentum. This bullish price action is due to the Bitcoin breakout above $32,000.
AVAX price is showing minor gains today despite a 0.57% pullback in BTC. After a failure to break above $35,000, Bitcoin price is consolidating around $34,400. Altcoins are also trading slightly below their daily highs due to the pullback in Bitcoin.
Avalanche Latest News
Avalanche is making headlines as the block explorer SnowTrace is set to halt operations. The block explorer which was powered by Etherscan showed the network transactions and wallet status on Avalanche blockchain. Before the shutdown, it has also issued a warning to its users to save or backup their essential information.
In other news, the CEO of the networking app Stars Arena has also recently stepped down. The app which was a clone of Friend.Tech app on Coinbase’s Base blockchain is currently experiencing a massive decrease in daily activity and the number of transactions.
AVAX TVL Is Down 28% YTD
On-chain data shows that there has been a significant drop in the total locked value (TVL) on the Avalanche blockchain since the start of this year. DeFi Llama shows that the TVL on the network has fallen from $759 million in January to only $547 million. This is a 28% drop in a span of 10 months and is a primary reason behind the underperformance of Avalanche price during this time.
Despite a strong surge in the AVAX/USD pair, the AVAX/BTC pair is yet to show any strength. This shows that the smart contract cryptocurrency is lagging behind the Bitcoin price despite a market wide uptrend in altcoins. However, a weekly closure above the 0.00042 level may act as a strong bullish reversal signal for the AVAX to BTC pair.
Avalanche Price Prediction
The AVAX to USD chart shows a clear formation of the falling wedge pattern on a high timeframe. These patterns tend to be very bullish in case of upward breakouts. One such breakout can be seen on the following chart, where the price has broken out of the pattern on the daily timeframe.
As soon as the price breaks above $12.55, where lies the 200 MA, AVAX price prediction will flip very bullish. After a breakout from the falling wedge patterns, the price usually targets the top of the wedge which is currently present above $30. If this move occurs, it will be a 167% surge from the current price.