Avalanche (AVAX) Price Rises after a Short Downtrend as Staking Rate Exceeds 50%
Avalanche (AVAX) fell below the uptrend line on March 13, signaling that the bears had beaten the bulls. In today’s session, the attempts by the buyers to push the price up above the breakdown level were met with strong selling by the bears.
Where AVAX is Headed
Currently, AVAX is trading at $67.90, which is a 1% rise over the last day with the trading volume up 14%. However, it has been among the top performers in the crypto space since January due to the highly developed staking structure and community participation.
As long as bears sink and sustain the price below $64, the AVAX/USDT pair could slide to $51, which has proven to be strong support. The 20-day EMA ($74) is downsloping, while the RSI is in the negative territory, suggesting an advantage for sellers.
This negative perspective will be rendered worthless in the near run if the price rises from its present level and breaks above the moving averages. The bulls will then attempt to break through the barrier at the descending channel’s downtrend line.
Four previous bullish rallies have failed at this level due to the downtrend line. Hence, it is an important level to watch out for around this time. The pair could rally to $100 if bulls sustain their momentum above the channel.
Staking Rate Reaches 50%
According to WuBlockchain, the Avalanche network’s staking rate has surpassed 50%, with most stakers based in the United States and using Amazon Cloud Services to validate the network.
It is expected that the network’s staking rate will grow in the future. Amazon Cloud Services powers 64.5 percent of the validator nodes, with the other half split among smaller providers such as Digital Ocean, Heinzner Onli, and Contabo. Surprisingly, Google LLC does not cover even 5% of the distribution of providers.
Germany comes in second place in terms of nation, with around 25% of all validators residing in one of Europe’s largest countries.
Validator and Delegator Requirements
To become an AVAX validator, users must have at least 2,000 AVAX on their balance. Meanwhile, the delegator requirement is more modest at 25 AVAX. The minimum amount of time required for validation is two weeks, and the maximum is one year.
The same applies to delegations and fee rate of 2%. The main danger for validators is that they can’t modify transactions’ initial parameters. Also, users cannot remove their stake early or change the reward address after signing off on a transaction.
Bitcoin and the Rest of Crypto
Despite big events in the crypto industry in recent days, Bitcoin is experiencing a period of exceptional price stability. BTC is now trading about $38,800, roughly amid the $33,000-$44,000 range that it has been trading in since early January.
There have been a few modest surges and crashes throughout that time, owing to big geopolitical events such as Russia’s invasion of Ukraine. Still, a long-term trajectory has yet to materialize.
The larger cryptocurrency market has mostly tracked bitcoin’s price changes. However, other popular cryptocurrencies, like Ethereum (ETH), Cardano (ADA), and Solana (SOL), have experienced significantly greater losses as investors shifted their focus to the less risky bitcoin.
Meanwhile, the European Parliament’s decision not to prohibit crypto mining on Monday, as well as US President Joe Biden’s executive order last week promoting innovation and growth in the field, bolstered Bitcoin’s burgeoning position as a store of value amid times of geopolitical and economic turmoil. Elon Musk has also stated that he will not sell his shares.
