• Sat. Feb 24th, 2024

Avalanche becomes bullish. Here is the reason and next target

  • Avalanche rose by 4% on Monday.

  • Avalanche onboarded Alibaba Cloud and will use the latter’s suite of products.

  • The cryptocurrency remains largely bearish.

Avalanche price (AVAX/USD) gained more than 4% on Monday amid positive cryptocurrency news. A bear momentum has subdued the token of the Avalanche protocol for quite a while. Monday’s rally could offer hopes that AVAX will overcome a projected drop to below $10. The cryptocurrency traded at $14.07 as of press time.

Investors may have rekindled hopes for the DeFi protocol days after getting the nod from Alibaba Cloud. The subset of e-commerce giant Alibaba expanded its developer tools and cloud technology to the Avalanche blockchain. Avalanche users will be able to build products, launch validator nodes, keep custody, and share resources via Alibaba Cloud in Asia. The developers can also use the suite of products offered by Alibaba Cloud to enhance their products and meet demand.

The latest announcement comes amid a slow DeFi activity that has cost platforms such as Avalanche. According to data aggregator DefiLlama, the total value locked on DeFi protocols stands at $42.83 billion. The volume is a decline from $54.11 billion in the last 30 days. It also compares to $170.01 billion TVL at the start of the year. With the low activity, tokens of associated platforms have crashed sharply this year. AVAX has subsequently lost 90% of its value from the all-time high.

AVAX stays bearish despite an improved momentum

AVAX/USD Chart by TradingView

From the technical outlook, AVAX price is rising along the 20-day moving averages. The MACD indicator shows improving momentum for the cryptocurrency, although it is still bearish. 

The longer-term market bias is bearish for AVAX. The 50-day MA is the next level to watch. A recovery above the MA could take AVAX to $19 and $21 next.

Should you buy AVAX now?

Despite the latest gains, buying AVAX now could be premature. The bear market remains in place, despite the latest recoveries. Should buyers fail to capitalise on the current gains, $10 remains in sight for a potential price bottom.

Where to buy AVAX

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in.

It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest.

eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.


Buy AVAX with eToro today

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in.

OKX takes customer security very seriously, they store almost all of their clients’ funds in cold storage, and the exchange is yet to be hacked.

On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.


Buy AVAX with OKX today

The post Avalanche becomes bullish. Here is the reason and next target appeared first on CoinJournal.