The post Why is Avalanche Price Up? Examining a Breakout Altcoin Rally Alongside Meme Kombat appeared on BitcoinEthereumNews.com.

Avalanche’s native token, AVAX, has seen monumental growth over the past week, rising over 80% while outshining top alternative cryptocurrencies.  This price boom has propelled AVAX into the ranks of the top 10 digital assets globally, as per tracking site CoinMarketCap. AVAX now trades around the $41 level. According to blockchain analytics firm Into the Block, Avalanche’s network saw nearly 1,000 large transactions over $100k last week – pointing to growing institutional interest. Though still below the mania seen in previous bull markets, this statistic signals AVAX’s strengthening fundamentals. Intriguingly, AVAX’s vertical price rally happened despite Bitcoin witnessing selling pressure. This inverse correlation shows AVAX marching to the beat of its own drummer in recent days. When a cryptocurrency can post gains even during periods of Bitcoin consolidation or bearishness, it signals that the project is gaining its own independent following and momentum. Investor money is flowing into that particular token rather than sticking with tried-and-true Bitcoin. In Avalanche’s case, its recent price separation from Bitcoin further validates the blockchain’s budding ecosystem and usefulness for decentralized applications requiring scale and speed. Traders confident about Avalanche’s future adoption benefits are clearly willing to accumulate AVAX tokens regardless of broader market conditions. This is a hallmark of the most promising smart contract platforms. Examining market indicators, the daily Relative Strength Index (RSI) for AVAX spiked above 90 last week. Values this lofty generally mean a short-term cooldown is ahead. Given the parabolic ascent thus far, traders should prepare for the chance of a pullback while keeping sight of Avalanche’s long-term investment merits. Avalanche’s Recent Breakout Powered by Development and Collaboration According to trader Alex Wacy, Avalanche has pivoted towards building for the future and forming key partnerships over the past months. This strategic shift appears correlated with exploding on-chain activity and the…

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Filed under: News - @ December 13, 2023 4:26 am