After rising 120% in November, can AVAX still repeat Solana’s run?


After climbing 120% in November and entering the top 10 ranking of cryptocurrencies by market capitalization, Avalanche (AVAX) entered a correction phase, lost 10th position to Dogecoin (DOGE) and now everyone wants to know where the latest market sensation will be heading in the short and medium term. Since hitting an all-time high of $146.22 on November 21, AVAX has already retreated 21.5%

As of this writing, it is priced at $118.00, an intraday low of more than 9%. Despite the sharp drop in the last 24 hours, in the last seven days the Avalanche still shows a positive variation of 10%, from I wake up with CoinMarketCap data. Among the top 20 cryptocurrencies, only AVAX, Crypto.com Coin (CRO) and Polygon (MATIC) are not operating in the red at the moment.

AVAX/USDT daily chart. Source: Trading View.

AVAX trading volume remained relatively high throughout November, especially on the days when the cryptocurrency closed higher, a clear indication of the euphoria of retail investors.

Although trading volume is slightly lower compared to the August and September bull rally, the announcement of a partnership with Deloitte, a leading company in auditing, consulting, financial advisory and risk assessment services, and a new program to attract developers to its ecosystem have consistently sustained the rise of AVAX.

Defi ecosystem

Despite the general correction of the market in recent days and the AVAX specifically since Tuesday, the Total Locked Value (TVL) in Avalanche’s network has not retreated. On the contrary, it remained on the rise. Even milder in the last 24 hours – only 0.39%.

However, in the week, the network’s TVL grew approximately 20%, accounting for US$ 2 billion in entries, and today it is US$ 12.47 billion, from I wake up with the Defi Llama data monitoring platform.

In the same period, Avalanche surpassed Terra (LUNA) and is now only behind leader Ethereum (ETH), Binance Smart Chain and Solana (SOL) in terms of TVL, providing proof that the protocol’s DeFi ecosystem is in full swing. development.

Notably, DEXs (decentralized exchanges) and the valuation of assets based on Avalanche’s blockchain contributed to this substantial increase in TVL at a time of widespread market losses.

repeating the sun

Traders and analysts have compared the recent AVAX price action with Solana’s (SOL) trajectory in August and September. And there really are similarities, such as the fact that both bull rallies, both then and now, took place independently, totally uncorrelated to general market sentiment.

Cointelegraph Brazil consulted analyst Diego Consimo, founder of Crypto Investidor, to find out if the AVAX is just undergoing a natural correction after the renewal of historic highs and could still match Solana’s performance throughout 2021.

Consimo told the article that AVAX should, yes, remain in an uptrend:

“The Avalanche is in a beautiful upward movement that aims to reach the range of US$ 450.00 to US$ 600.00. This represents a possibility of an increase of 300% to 450% in relation to the current exchange rate of US$ 118.00 In the current cycle, it has already risen around 5,000% since January, if it reaches the mentioned target, it will accumulate a high around 17,000% to 22,000% in the current market cycle.

No one can accurately predict when the current cycle will end, triggering yet another crypto winter. But Consimo and other analysts believe the top should come sometime during the first half of 2022.

AVAX price action projection until 2023. Source: Crypto Investidor.

Looking at the long term, the analyst at Crypto Investidor sees possibilities that the AVAX/USDT pair may exceed US$1,000 at some point between 2023 and 2025.

In turn, so far in 2021, SOL has already accumulated gains greater than what AVAX will be able to achieve, according to Consimo’s predictions:

Solana already delivered in 2021 an increase of 24,000% and should still go up a little more, seeking the range around US$ 350.00 to US$ 450.00. If Solana manages to reach these value levels, it will have a cumulative increase of around 30,000% by the end of 2021.

Consimo emphasizes that Sam Bankman-Friedman’s institutional and financial support for Solana was decisive for SOL’s amazing performance throughout 2021 and that hardly any other asset will be able to replicate it organically.

Short term

Meanwhile, in the short term, Cointelegraph analyst Rakesh Upadhyay points out that the current AVAX correction may find support in the zone between the 38.2% Fibonacci retracement level at $112.63 and the Exponential Moving Average of 20 days ($103).

Also according to the analyst, if the price rebounds beyond this zone it means traders are buying the lows and sentiment remains positive, with the possibility of a retest of the historic high soon.

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Thomas Miles

Cryptocurrency is the most recently discovered currency which will be likely at the help of modernization across the next few decades. With a limited control from the government, the crypto market is independent of many features of a sound market as we know it. Thomas brings these stories to us by weaving them into articles of general importance to all those looking at the fluctuations in the market, or new entries. Thomas is also the founder of Bulletin Bits and is an excellent leader. His leadership is the kind that makes him the most knowledgeable and experienced on the team. His wonderful work ethic and attitude are worthy of imitation!

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