Avalanche (AVAX) Targets $100 as Layer-1 Protocols Shine

Bob Mason
Updated: Mar 21, 2022, 08:18 GMT+00:00

Avalanche (AVAX) is edging closer to $100, with user access to the Anchor Protocol yields driving demand for the altcoin.

Avalanche AVAX token symbol cryptocurrency in the center of spir

Key Insights:

  • Avalanche (AVAX) hit a Friday high of $86.95 as bulls target a return to $100.
  • Demand for Layer-1 protocols has surged, with Avalanche network updates also AVAX positive.
  • Technical indicators are beginning to flash green, suggesting more upside ahead.

It was a bullish day for AVAX on Friday, with AVAX leading the top ten crypto majors on the day. The rest of the top 10 cryptos, by market cap, saw more modest gains, with Ethereum (ETH) up 4.42% to come a distant second.

Following a 7.22% rally on Thursday, AVAX jumped 8.13% on Friday to end the day at $85.93.

Network Updates and Interest in Layer-1 Protocols Deliver Support

Interest in Avalanche has surged following news that Avalanche users can stake TerraUSD (UST) in the Anchor Protocol. Avalanche users can now stake their UST without needing to place their funds off-chain.

Anchor Protocol (ANC) has made plenty of headlines in recent weeks. The DeFi staking platform offers UST stakers annual percentage yields (APY) of 20%.

AVAX Price Action

At the time of writing, AVAX was down by 0.08% to $85.86.

AVAXUSD 230222 Daily
Bulls target $100 driven by user access to Anchor Protocol yields.

Technical Indicators

AVAX will need to avoid the day’s $83.11 pivot to make a run on the First Major Resistance Level at $89.75. AVAX would need the broader crypto market to support a breakthrough Friday’s high of $86.95.

An extended rally would test the Second Major Resistance Level at $93.57 and resistance at $95. The Third Major Resistance Level sits at $104.01.

A fall through the pivot would test the First Major Support Level at $79.29. Barring an extended sell-off, AVAX should avoid a return to sub-$75. The Second Major Support Level sits at $73.69.

AVAXUSD 190322 Hourly
Avoiding a fall through the day’s pivot level would bring Major Resistance Levels into play.

Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bullish signal. AVAX continues to hold above the 200-day EMA currently at $77.00.

This morning, the 50-day EMA has converged on the 100-day EMA, delivering support. The 100-day EMA has also narrowed to the 200-day EMA, bringing the Major Resistance Levels into play.

A bullish cross of the 50-day through the 100-day EMA would bring $95 levels into play.

Avoiding sub-$85 and the 200-day EMA would support a return to $100.

AVAXUSD 190322 4 Hourly
A bullish cross of the 50-day EMA through the 100-day EMA would give the bulls a run at $95.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.