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Avalanche (AVAX) has advanced from $9.92 to $11.20 since August 28, 2023, and the current price stands at $10.41. However, when we take a look at the “bigger picture,” we can see that the price of AVAX continues to move in a strong downtrend, and this cryptocurrency remains in a bear market.

Avalanche (AVAX) has been moving down since April 19, 2023, and investors should keep in mind that the effect of the crypto price crash, U.S. inflation growth, and interest rate hikes haven’t diminished from the market yet.

But where is the price of Avalanche (AVAX) going next, and what can we expect from September 2023?

Today, Crypto Lists will discuss AVAX price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.

Addressing the limitations of earlier blockchain platforms

Avalanche is a blockchain platform that allows you to build decentralized applications, and it was designed to address some of the limitations and challenges faced by earlier blockchain platforms like Bitcoin and Ethereum, particularly in terms of transaction speed, scalability, and consensus mechanisms. Avalanche can process more than 4,000 transactions per second, and it is one of the fastest smart contracts platforms in the blockchain industry.

It is important to say that Avalanche has a novel consensus algorithm called the Avalanche consensus protocol, which allows for rapid confirmation of transactions by utilizing a system of repeated randomized sampling and voting. Essentially, nodes in the network quickly agree on the validity and ordering of transactions, leading to high throughput and low latency.

The platform supports the creation of custom blockchain networks, known as subnets, which can have their own rules, parameters, and virtual machines. This allows developers to tailor their DApps to specific use cases while still benefiting from Avalanche’s consensus and security features. The popularity of Avalanche is growing, and its flexibility is positioning it as the best option for institutions, enterprises, and governments.

Many projects already collaborate with Avalanche, and the most popular ones include Mastercard, Celer, Deloitte, Arweave, Aave, Bitfinex, Ankr, Binance, BitMart, Coinbase, Curve, Sushiswap, Huobi, Nexo, Chainlink, Cartesi, and Celer Network. AVAX is the native token of the Avalanche platform, and it can be used for various purposes, including transaction fees, participating in network governance, and staking to secure the network.

Rating: 9.33/10
Supply: 243,190,000 / 395,344,000
Release date: April 22, 2020

Description: Discover Avalanche coin now!

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.

The cryptocurrency market advanced in the last days of August

Fundamentals of AVAX are usually tied to the overall cryptocurrency market, which remains supported at the beginning of this trading week. One of the reasons that lifted investors’ optimism again is connected with weak U.S. job data that indicated a cooling U.S. economy and kept alive expectations that the Federal Reserve would certainly pause rate hikes in September.

The U.S. employment report that was released this Wednesday showed that the U.S. private sector’s job growth decelerated more than expected in August, and according to the report, private employment grew by 177,000 this month, which was below the expectations of 195,000.

On Tuesday,  the Bureau of Labor Statistics reported that U.S. job openings fell in July to levels not seen since early 2021, and it is important to say that this was the third straight month of decrease.

In the meantime, fresh gross domestic product (GDP) numbers showed the U.S. economy expanded 2.1% in the second quarter, slower than a preliminary estimate of a 2.4% growth. Weak economic and jobs data boosted optimism on the U.S. stock market, and the crypto market displayed again a high correlation with U.S. stocks. David Russell, global head of market strategy at TradeStation, said:

“We’re back to a spot now where bad news is something of good news. The most recent data really shows that the economy is not overheating, which puts us back in the situation where we don’t have as much fear of additional rate hikes at this point in time.”

Positive sentiment shift

The real positive news that lifted sentiment on the cryptocurrency market is connected with the fact that crypto asset firm Grayscale scored a major court win against the Securities and Exchange Commission. A federal judge approved Grayscale’s application of a spot Bitcoin exchange-traded fund – an investment vehicle that is not yet present in the U.S. after all applications have been rejected by the SEC.

But it’s not a done deal just yet, and the SEC has 45 days to appeal to the Supreme Court. The financial watchdog, helmed by former blockchain tutor Gary Gensler, said it is reviewing the decision and will decide on the next steps soon. If approved, Grayscale’s spot Bitcoin ETF would be America’s first ETF with direct exposure to Bitcoin.

Not long ago, AVAX was trading above $20 ( April 2023), but since then, the price of AVAX has been decreasing, and despite the current jump, the price of this cryptocurrency remains in a bear market. Avalanche (AVAX) is a highly risky investment, while the wider dynamics of the cryptocurrency market also play an important role in determining the price of AVAX.

Recession fears and monetary policy decisions from major central banks will continue to influence the cryptocurrency market in the weeks ahead, and a recommendation is that investors should continue to take a defensive investment approach.

Technical analysis for Avalanche (AVAX)

After hitting price levels above $20 on April 18, 2023, Avalanche (AVAX) has encountered losses of more than 50%. Avalanche’s fundamentals are strongly tied to the overall cryptocurrency market, and AVAX might have a hard time holding above the $10 level in the upcoming weeks.

On the chart below, I marked the trendline, and as long the price of Avalanche is below this trendline, we can’t talk about a trend reversal, and the price of AVAX remains in the SELL-ZONE.

Technical analysis for Avalanche (AVAX)

Important support & resistance levels for Avalanche (AVAX)

Important support & resistance levels for Avalanche (AVAX)

On this chart (the period from March 2023), I marked the important support and resistance levels that can help traders understand where the price could move. Avalanche (AVAX) remains in the “bearish phase, “but if the price jumps above $12, it could be a sign of a trend reversal, and the next target could be located around $14.

The current support level is $10; if the price breaks this level, it would be a “SELL” signal, and we have the open way to $9. If the price drops below $9, the next target could be located around $8, which represents a strong support level.

What speaks for the rise in the Avalanche (AVAX) price

The upside potential for AVAX probably remains limited for September 2023; still, if the price advances above the resistance that stands at $12, the next target could be resistance at $14. Traders should also consider that the price of AVAX is correlated with Bitcoin, and if the price of Bitcoin jumps again above $30000, we can see this cryptocurrency at a higher price level than the current price.

What indicates the downfall of Avalanche (AVAX)

The downfall of Avalanche (AVAX) can be influenced by a wide range of factors, including market sentiment, regulatory developments, technological advancements, macroeconomic trends, and more.

The last several months have been negative for AVAX, and investors should continue to take a defensive investment approach as the macroeconomic landscape remains uncertain. The current support level for AVAX stands at $10, and if the price falls again below this level, it could reach $9 this time.

What do analysts and experts say?

The cryptocurrency market is advancing in the last days of August; Bitcoin’s price hit levels above $28,000 this Tuesday, and this situation also has a positive influence on AVAX.

News that crypto asset firm Grayscale scored a major court win against the Securities and Exchange Commission lifted sentiment on the cryptocurrency market, but weak U.S. jobs data also boosted optimism.

According to analysts, this situation with weak U.S. job data is an example of when bad news looks like good news, and investors now expect that the Federal Reserve will certainly pause interest rate hikes in September. However, a recommendation is that investors should continue to take a defensive investment approach in the weeks ahead, and market sentiment, regulatory developments, and macroeconomic trends will continue to have a major influence in determining the price of AVAX.

There are expectations of “some market turbulence” from looming recession concerns, while many analysts expect that the U.S. central bank could keep interest rates at restrictive levels for a longer period, which is not good for risk-on assets such as cryptocurrencies.

Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.

by Our Certified Author
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