Avalanche Price Up On Validators Incentives News — Can AVAX End 2023 At $40?
AVAX continued to surge but now found resistance. Is another high likely before the end of 2023?
Key Takeaways
- Avalanche has been seen to keep subsidizing its validators.
- AVAX is up by 336% since October.
- A 15% pullback was seen, but another yearly high can still be achieved.
Avalanche has recently made headlines with its strategic decision to heavily incentivize validators, sparking a notable surge in its market value.
As of December 7, this fourth-generation proof-of-stake blockchain had allocated over $275 million in AVAX to reward its validators in the past year, a move that starkly contrasts with its $11.5 million earnings in user fees.
This bold strategy, aimed at securing the network and ensuring seamless transaction confirmations, reflects Avalanche’s commitment to maintaining a robust and decentralized network.
The impact of this decision is evident in the market’s response, with Avalanche’s market cap soaring above $9.8 billion, ranking it within the top 10 for liquidity and surpassing rivals like Polygon and Polkadot.
The financial implications of Avalanche’s validator incentives have rippled through the AVAX community, prompting speculation and excitement about the potential price trajectory of AVAX as we approach the end of 2023. Can AVAX maintain its upward momentum and reach the $40 mark by the end of 2023?
AVAX Price Analysis
The price of AVAX made its lowest point of just below $9 on September 26, and after retesting this level on October 19, it started increasing with strong bullish momentum.
It led the price into a breakout above its multi-year descending trendline and surged to $38 at its highest point today, December 11, marking an increase of 336%. This parabolic rise has caused the price to overextended, and with some struggles seen today with a decline of nearly 15%, was this the end of the rise?
AVAX Price Prediction
Zooming into the 4-hour time frame and examining the wave structure of the last uptrend, we can see that the price is in its ending wave. However, judging by its sub-wave structure, there appears to be one more push to the upside.
According to this count, today’s high was wave 3 out of the lower degree five-wave impulse, and now, in the short term, we will see a minor correction that should consolidate the price.
If this turns into a more aggressive downward move, it could indicate that the uptrend ended, but if it gets shallow or sideways, it will indicate another higher high ahead. In conclusion, the price potential to the upside would depend on what happens now on the expected downturn.
Its $40 target is only 11%, so it could easily surpass it on the next runup and continue to the next significant resistance at $53. In the case that it makes a sharp decline, it would mean that the price encountered strong resistance and will likely mark its year high at today’s $38.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
