Avalanche summit path: Down before we climb heights to glory!
History doesn't rhyme but it often repeats.
Technical Analysis:
Rejection from 21W EMA & 20W SMA
$11 repeat support tests will eventually breakdown, especially with Q3 and Q4 being historically poor performance for alt coins. Side this with actual recession now going to play our as opposed to initial fears.
Worst case scenario; $4.20 (hehe) as strong support line. If it does reach here... Time to start going all in (not actually, I mean leverage, possibly 3x max)
Looking at market cycle, we've have two LL's so far but are yet to see the 3rd LL (depression phase). With shitcoins still pumping in this market environments (monetary tightening and reducing liquidity) greed has not been flushed yet. Moreover, looking at the last crypto market cycle, alt coins went into a bear market for approximately 750 days, it's still to soon yet to call the bottom. Always hard to say but not a bad idea to nibble DCA in case we do somehow go on a tear up. It's a wild rodeo in crypto markets.
Fundamentals
Here are some of the best fundamentals for an increase of the AVAX token:
- Strong partnerships and adoption. Avalanche has been partnering with a number of major companies and organizations in recent months, including Amazon Web Services, Deloitte, and the U.S. Department of Energy. This adoption is a sign of confidence in the Avalanche platform and could lead to increased demand for AVAX tokens.
Growing DeFi ecosystem. Avalanche has a rapidly growing DeFi ecosystem, with over $10 billion in total value locked (TVL). This growth is being driven by a number of factors, including the low fees and fast transaction speeds of the Avalanche network.
- Scalability and speed. Avalanche is one of the most scalable blockchains in the world, capable of processing over 4,500 transactions per second. This makes it a good choice for applications that require high throughput, such as DeFi and gaming.
- EVM compatibility. Avalanche is EVM-compatible, which means that developers can easily port their Ethereum applications to the Avalanche network. This makes it a more attractive option for developers than other blockchains that are not EVM-compatible.
- Active community. Avalanche has a large and active community of developers and users. This community is constantly building new applications and projects on the Avalanche network, which helps to drive demand for AVAX tokens.
- Positive Regulatory Environment (AVAX itself). A favorable regulatory environment in key markets can boost investor confidence. If regulators in major countries provide clarity or positive guidelines regarding the use of Avalanche or AVAX, it can lead to increased investor interest.
Tokenomics
- Limited supply. There is a maximum supply of 720 million AVAX tokens, which is a relatively small supply for a major cryptocurrency. This could help to drive up the price of AVAX tokens as demand increases.
- Staking rewards. AVAX tokens can be staked to earn rewards. This staking mechanism helps to secure the Avalanche network and also provides a way for investors to earn passive income from their AVAX tokens.
- Fee burning. All fees on the Avalanche network are burned, which reduces the circulating supply of AVAX tokens over time. This helps to increase the scarcity of AVAX tokens and could drive up the price.
- DeFi ecosystem. The Avalanche DeFi ecosystem is growing rapidly, and this could lead to increased demand for AVAX tokens. As more DeFi applications are built on Avalanche, more AVAX tokens will be needed to pay for gas fees and other transactions.
- Institutional adoption. Avalanche is starting to gain traction with institutional investors. This could lead to increased demand for AVAX tokens as institutions start to allocate capital to the cryptocurrency market.
Overall, the tokenomics of AVAX are designed to support a rising price for the token. The limited supply, staking rewards, fee burning, DeFi ecosystem, and institutional adoption are all factors that could drive up the price of AVAX tokens in the future.
Investing/Trading
I love asymmetric returns. How can you resist 20x returns to ATH and 75x returns for bullish case scenario?
As my favorite crypto guy says
"Time is on our side" - Benjamin Cowen
Technical Analysis:
Rejection from 21W EMA & 20W SMA
$11 repeat support tests will eventually breakdown, especially with Q3 and Q4 being historically poor performance for alt coins. Side this with actual recession now going to play our as opposed to initial fears.
Worst case scenario; $4.20 (hehe) as strong support line. If it does reach here... Time to start going all in (not actually, I mean leverage, possibly 3x max)
Looking at market cycle, we've have two LL's so far but are yet to see the 3rd LL (depression phase). With shitcoins still pumping in this market environments (monetary tightening and reducing liquidity) greed has not been flushed yet. Moreover, looking at the last crypto market cycle, alt coins went into a bear market for approximately 750 days, it's still to soon yet to call the bottom. Always hard to say but not a bad idea to nibble DCA in case we do somehow go on a tear up. It's a wild rodeo in crypto markets.
Fundamentals
Here are some of the best fundamentals for an increase of the AVAX token:
- Strong partnerships and adoption. Avalanche has been partnering with a number of major companies and organizations in recent months, including Amazon Web Services, Deloitte, and the U.S. Department of Energy. This adoption is a sign of confidence in the Avalanche platform and could lead to increased demand for AVAX tokens.
Growing DeFi ecosystem. Avalanche has a rapidly growing DeFi ecosystem, with over $10 billion in total value locked (TVL). This growth is being driven by a number of factors, including the low fees and fast transaction speeds of the Avalanche network.
- Scalability and speed. Avalanche is one of the most scalable blockchains in the world, capable of processing over 4,500 transactions per second. This makes it a good choice for applications that require high throughput, such as DeFi and gaming.
- EVM compatibility. Avalanche is EVM-compatible, which means that developers can easily port their Ethereum applications to the Avalanche network. This makes it a more attractive option for developers than other blockchains that are not EVM-compatible.
- Active community. Avalanche has a large and active community of developers and users. This community is constantly building new applications and projects on the Avalanche network, which helps to drive demand for AVAX tokens.
- Positive Regulatory Environment (AVAX itself). A favorable regulatory environment in key markets can boost investor confidence. If regulators in major countries provide clarity or positive guidelines regarding the use of Avalanche or AVAX, it can lead to increased investor interest.
Tokenomics
- Limited supply. There is a maximum supply of 720 million AVAX tokens, which is a relatively small supply for a major cryptocurrency. This could help to drive up the price of AVAX tokens as demand increases.
- Staking rewards. AVAX tokens can be staked to earn rewards. This staking mechanism helps to secure the Avalanche network and also provides a way for investors to earn passive income from their AVAX tokens.
- Fee burning. All fees on the Avalanche network are burned, which reduces the circulating supply of AVAX tokens over time. This helps to increase the scarcity of AVAX tokens and could drive up the price.
- DeFi ecosystem. The Avalanche DeFi ecosystem is growing rapidly, and this could lead to increased demand for AVAX tokens. As more DeFi applications are built on Avalanche, more AVAX tokens will be needed to pay for gas fees and other transactions.
- Institutional adoption. Avalanche is starting to gain traction with institutional investors. This could lead to increased demand for AVAX tokens as institutions start to allocate capital to the cryptocurrency market.
Overall, the tokenomics of AVAX are designed to support a rising price for the token. The limited supply, staking rewards, fee burning, DeFi ecosystem, and institutional adoption are all factors that could drive up the price of AVAX tokens in the future.
Investing/Trading
I love asymmetric returns. How can you resist 20x returns to ATH and 75x returns for bullish case scenario?
As my favorite crypto guy says
"Time is on our side" - Benjamin Cowen