Avalanche price rebound continued on Monday as demand for its NFT solutions rose. The AVAX token rose to a high of $30.16, which was the highest level since May 23rd of this year. It has jumped by over 118% from its lowest level this year. Its market cap has jumped to over $8 billion.
Avalanche is an Ethereum rival that solves some of the biggest challenges that smart contract platforms have. It is a proof-of-stake platform that has blazingly fast speeds and low carbon emissions. It is also known for its large Avalanche Rush and Multiverse funding rounds that are providing developers with millions of funds to build their projects.
Avalanche has been used to build some of the most popular blockchain projects in the industry. Some of the apps in its ecosystem are Benqi, Aave, Trader Joe, and GMX among others. Its total value locked (TVL) stands at over $2.45 billion, making it one of the biggest players in the DeFi industry.
However, this TVL is sharply lower than its all-time high of over $12 billion. At the same time, AAVE has a market dominance of about 45%, which is a bit risky.
It is unclear why Avalanche price went parabolic on Monday. A possible reason is that NFT projects in the platform have done relatively well. Data compiled by CryptoSlam shows that total sales in the ecosystem rose by over 37% in the past 24 hours.
There were 209 transactions worth over 28,730. Still, this volume is significantly lower than the 52,987 transactions that happened in Solana. Another possible reason why AVAX price is rising is that of fear of missing out (FOMO) now that cryptocurrencies seem to be in a bull run.
Avalanche price prediction
The daily chart shows that the AVAX price has made a strong recovery in the past few weeks. Along the way, the coin managed to move above the important resistance levels at $22.14 and $26.43. It also continued rising and moved above the 25-day and 50-day moving averages. The MACD has also risen to the highest point in years.
Therefore, the coin will likely continue rising as bulls target the next key resistance point at $35. A drop below the support at $28 will invalidate the bullish view.