AVAX price slips by 7% – investors on high alert!

AVAX price slips by 7% – investors on high alert!

The value of the cryptocurrency Avalanche (AVAX) has fallen by 7% in a single day due to a break of technical support at $21.05. This decline occurred amid high trading volumes and represents a significant point for investors who need to closely monitor current market developments. On Wednesday, the price fell nearly 4%, adding to jitters among investors.

Technical analysis shows that the price is in a downtrend characterized by increasingly lower highs and lows. Resistance at $21.64 caused selling pressure to increase. Currently, critical support is at $20.85; A break below could result in a further decline to $20.50. It should be noted that a temporary double low was formed at $20.85, which led to a short-term recovery to $21.03.

Volatility and market conditions

AVAX's decline reflects the volatile nature of the overall crypto market, which is currently influenced by macroeconomic uncertainties and movements in Bitcoin. Loud investx.fr Breaking technical support shows Avalanche's vulnerability to downward pressure. Investors are therefore required to keep an eye on important technical levels and prepare for sudden price movements.

Despite the recent decline, some analysts see an opportunity for long-term investors to take advantage of buying opportunities. However, the need for diversification and a cautious investment approach are essential. The volatile nature of cryptocurrencies, including AVAX, requires investors to be highly vigilant.

About Avalanche (AVAX)

Avalanche itself is a blockchain platform that is considered a serious competitor to Ethereum. Launched by Emin Gün Sirer and the Ava Labs team in September 2020, the platform offers high speed, scalability and a unique architecture through subnets - individual blockchains within the network. The primary network consists of three specialized blockchains, including the X-Chain for digital assets, the C-Chain, which supports Ethereum-compatible smart contracts, and the P-Chain to manage the subnets and validators.

Avalanche boasts an impressive throughput of over 4,500 transactions per second, enabling fast processing at a low cost. However, there were also critical voices who expressed concerns about possible centralization and the technical complexity of the subnets. Users can use the AVAX token for transaction fees, staking and governance, while profits from trading AVAX are taxable in Germany if they are made within one year of purchase.

Overall, Avalanche has the potential to play a significant role in the crypto market. The platform not only offers applications in DeFi, Web3 gaming and supply chain management, but also flexible infrastructure through the development of custom blockchains. However, recent market movements should caution both short-term and long-term investors.

For more information about Avalanche and current developments, see the articles on investx.fr and bitcoin-2go.de be consulted.