# [NFA]Avalanche Analysis

**Published by:** [3HOUSE](https://paragraph.com/@3house/)
**Published on:** 2023-04-06
**URL:** https://paragraph.com/@3house/nfa-avalanche-analysis

## Content

Avalanche (AVAX) is a cryptocurrency that was launched in September 2020. It is the native token of the Avalanche network, which is a decentralized platform for building and launching blockchain-based applications. The network is designed to be scalable, efficient, and secure, making it suitable for a wide range of use cases. The AVAX cryptocurrency has quickly gained popularity in the crypto space, and its price has seen significant growth since its launch. In this analysis, we will examine the factors behind the growth of AVAX and its potential for the future.Scalability and EfficiencyOne of the primary reasons for the growth of AVAX is the scalability and efficiency of the Avalanche network. Unlike other blockchain platforms, which may experience slow transaction times and high fees during periods of high traffic, Avalanche is designed to handle large volumes of transactions quickly and efficiently. This is due to its unique consensus mechanism, which is called Avalanche-X. This consensus mechanism allows the network to process thousands of transactions per second, making it ideal for use cases such as decentralized finance (DeFi) and gaming.Decentralized Finance (DeFi)Decentralized finance (DeFi) is one of the most popular use cases for blockchain technology, and AVAX is well-positioned to benefit from this trend. The Avalanche network has a growing ecosystem of DeFi applications, including decentralized exchanges (DEXs), lending platforms, and stablecoins. One of the most popular DeFi applications on the Avalanche network is Pangolin, which is a DEX that allows users to trade AVAX and other tokens. Pangolin has seen significant growth since its launch, with over $2 billion in trading volume as of April 2023. Other notable DeFi applications on the Avalanche network include Benqi, which is a lending platform, and TrueUSD, which is a stablecoin.Community and PartnershipsAnother factor behind the growth of AVAX is its strong community and partnerships. The Avalanche network has a growing community of developers and users who are working to build and promote the platform. In addition, the network has formed partnerships with a range of companies and organizations, including Chainlink, Huobi, and BitMax. These partnerships have helped to increase the visibility of the Avalanche network and attract new users and investors.Future PotentialLooking ahead, AVAX has significant potential for growth. The Avalanche network is still in its early stages, and there is a lot of room for new applications and use cases to emerge. In addition, the network is planning to launch a major upgrade in the near future, which is called Avalanche Rush. This upgrade will introduce new features and improvements to the network, including increased scalability and interoperability with other blockchains.ConclusionOverall, AVAX is a cryptocurrency with strong growth potential. Its scalability and efficiency, coupled with its growing ecosystem of DeFi applications and strong community, make it well-positioned to benefit from the growth of the blockchain industry. As with any investment, however, it is important to do your own research and consider the risks before investing in AVAX or any other cryptocurrency. The crypto market can be volatile and unpredictable, and there is no guarantee of future success.TECHNICAL ANALYSISBefore we look at AVAX itself we need to look at overall crypto market state. We will use bitcoin chart to clarify potential movement on the market. Right now we are in consolidating area and movement further cannot be clearly said. By looking at RSI we are near Overbought area which gives us hint that price might go lower to OB around 25200$ in order to proceed movement to the topside later. There is also scenario where we go to 22300 in order to clear remaining Void created by big volume daily candle.By looking at heatmap we have a lot of liquidations below 30k level and at 25500 level. If we would want to keep liquidity as prior in our analysis it looks like 29500 will be taken first and then we might see significant drop.LONG vs SHORT liquidations are almost the same that gives us confirmation that we are definitely in consolidating area Bitcoin domination however has a lot of room to fall now that means that every minor move on BTC will make ALTS go high a lot. April is really important month for economy since we have a lot of news coming which will influence market heavily. I highly recommend looking carefully on charts and position when it comes to trading and risk small amount in upcoming days. Let’s jump into AVAX analysis now: There are two scenario for AVAX right now and its bullish and bearish scenarioBEARISH AVAX SCENARIOAs marked on a chart, avax is slowly creating uptrend in order to retest previous local highs. Im looking for filling Void at 19.55 area and increased volatility in that level that will push us further into our entry point which is marked on the chart (20.97-21.72). TPs would be: 1)18.34 area that is current consolidating area (SL TO ENTRY) 40% OUT 2)15.00 area that is breaker block area with decent support on there. FULLY OUTBy looking at 4H chart we can clearly see big volume candle that created FVG that has been partially filled already. our TP aread is at this fvg fill but you can leave some runners until we fully clear void.BULLISH AVAX SCENARIOWhen it comes to bullish scenario our goal would be to enter at previous short TP zone so around 14.50-14.20 with DCA at final FVG fill at 13.00. Im looking at strong push later with BTC to around 21.80 area with final TP at around 25.00. TPS: 1)17.57 SL TO ENTRY 30% off 2)21.40 50% off 3)24.92 FULLY CLEARED Presenting those two scenario doesnt expose us for specific market movement and we are prepared for both drop and spike to the topside. Since it’s hard to predict where price will go first feel free to watch charts and market conditions yourself and manage to land entry in marked zones. Overall I think that we might see some big alts push soon since bitcoin domination is falling down and we might be slowly approaching ALT season on market that makes alt coins spike heavily. RSI on AVAX is in the middle right now so push for short entry pop is most likely to happen if we want to keep market cycle scheme. We are constantly creating little BOS followed by HH and that might give us breaker through current trendline resistance (FLAG PATTERN).SUMMARYCurrent movement will be decided in upcoming news from Powell and inflation + unemployment info. AVAX is a great project that I’m accumulating on spot for quite a while now. I see big potential in it especially because of partnership and usefulness for incoming bullrun. Remember not to let your emotions speak through your trading decisions and always take healthy profits from your positions. There will be huge volatility in april so don’t risk a lot!! Happy Easter This is not trading advice, and any actions taken based on this information are solely at the reader's discretion. We do not make any guarantees or warranties about the completeness, reliability, or accuracy of this information. We encourage readers to do their own research before entering the market. ABOUT 3HOUSE NFA NFA is a showcase of the high-quality alpha shared on 3HOUSE and an opportunity for the development team to recognize and celebrate the well-researched and expertly-constructed predictions made by some of our 3HOUSE community members. Important note: Despite yielding positive returns for many investors, as the name states, NFA is Not Financial Advice and does not guarantee any results. NFA is merely to inform investors of potential market movements and general sentiment. Always do your own research.

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