Avalanche, the popular cryptocurrency, is now mirroring the pullback in the crypto market. The movement has pushed investors to wonder if AVAX is offering a buying opportunity or if it is a red flag.
The past few weeks have witnessed a momentum shift in the crypto market. Bitcoin, the market leader, entered a correction phase after hitting its all-time high in March. Similarly, Ethereum has also experienced a slump in its run. While AVAX is not directly related to BTC and ETH, their sheer stature has also affected Avalanche’s price.
The coin is currently trading at $47.87 dollars, with a 14.83% dip in the past seven days. However, the coin has gained 11.01% in value in the past month. What is causing the coin to fluctuate so much? Let’s find out:
- Market Correction: A quick market boost is naturally followed by a correction phase. That is what’s happening with the crypto market, driving AVAX’s price down.
- Network Congestion: The smart contract network has faced criticism for its network congestion, leading to slower transactions. This has discouraged some investors from investing in AVAX.
- Profit-Taking: As AVAX gained massive value in quick succession, many investors took their profits in a temporary sell-off.
Given the ongoing dip, the question arises: is this a buying opportunity for AVAX? The answer primarily depends on investors’ risk tolerance and investment horizon. The dip can be an appealing entry point for long-term investors.
In fact, the long-term AVAX coin price prediction sees the coin hitting $100 before 2024 ends. However, making short-term predictions for the coin is tough. Since there is no guarantee of a sustained rebound, investors must conduct their research before making the final call.
Avalanche consists of three interoperable blockchains with numerous subnets and distinct features. The platform chain (p-chain) handles transaction validation and subnet upkeep. While the exchange chain (x-chain) helps with trading operations, the contract chain (c-chain) allows developers to build dApps.
Avalanche’s future, much like every other crypto venture, is unpredictable. Even then, it is worth noting that the smart contract platform is offering a robust dApps ecosystem. With constant updates, Avalanche addresses its prevalent issues and attracts more developers. Therefore, its recovery is highly probable.
As for AVAX hitting $100 by 2024, investors must keep an eye on its updates and partnerships. Avalanche must undergo a massive price uptick with favorable market conditions and regulatory assistance.
In Conclusion
Avalanche’s recent price movement showcases the ongoing state of the crypto industry. Traders must carefully tread through the market and rely on their risk tolerance before investing in AVAX.
Crypto and its smart contract platform boast promise, but there are some uncertainties to overcome if market sentiment wells up, AVAX can overcome its downward spiral and gain considerable market value.
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