Bull flag breakout pushes Avalanche towards $80 as AVAX price reaches another record high

As traders increase their upside bets on smart contract protocols that are similar to Ethereum, the bullish setup emerges.
Avalanche (AVAX), which has hit a new high of more than $65 on Sept. 12, looks poised for $80. This classic technical pattern is called “Bull Flag” and it emerges as a short sideways/downward trend after a strong price movement higher. Bull Flags are often characterized by two parallel trendlines, which trap the price action. Bulls Flags are usually resolved after a break above the upper trendlines. Prices push as high as the previous upward trend’s height (i.e. Flagpole.AVAX’s price movement since Aug. 17 has apprehensively lead to the creation a Bull Flag pattern. AVAX/USD daily chart featuring bull flag. Source: TradingView.comThe chart below shows the structure’s development, from the $37-long uptrend. (Flagpole), to a downward-sloping channel’s formation and an upside breakout. AVAX price now appears to be targeting $80. This is due to Bull Flags’ popular profit targets. Analysts expect the price to break higher with a length equal to the flagpole’s. The AVAX profit target is $82.AVAX/USD daily chart with Bull Flag profit target. Source: TradingView.comThe Avalanche token has reached a new record price, reaching $66.47, after a 618% rebound from its July 20 low at $9.25. Source: TradingView.comThe setup appears as the Avalanche token reaches another record price level, hitting $66.47 for the first time in history, following a 618% rebound rally from its July 20 low of $9.25. The market has allowed the “Ethereum killers”, such as Solana (SOL), Cardano, ADA, Fantom (FTM), Avalanche and others, to thrive. According to DeFi Llama data, the total value locked (TVL), within the Solana ecosystem, has risen by 165% in seven days. In the same period, SOL/USD has jumped more than 42%. Fantom’s TVL has increased by 12.73% and FTM/USD exchange rates have risen by 39% over the past seven days. Avalanche’s TVL has risen 0.5%, while AVAX/USD has risen 41.10%. Blockchains and their TVL performance. Source: DeFi Llama. Ethereum’s TVL declined by 22.69%. This indicates that liquidity migration is taking place to rival chains. Avalanche Foundation launched the namesake DeFi incentive program in August 18. Source: DeFi Llama. The foundation gave $180 million to DeFi protocol that wanted to migrate from Ethereum chains into Avalanche. Source: DeFi LlamaAvalanche also saw growth in the NFT, and DeFi projects that are looking to run on its public ledger. That included a partnership Topps, a collectible and trading card maker that employed the Avalanche blockchain to launch its “2021 Topps Major League Baseball Inception NFT Collection.”Nonetheless, Ethereum remains the dominant force in the smart contracts space. To address its network fees and scaling issues, the project is currently undergoing major network upgrades. converting its core proof of work protocol to proof-of stake by next year. These views and opinions are solely the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your own research before making any investment or trading decision.

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