Avalanche price has pulled back in the past few days as investors wait for the upcoming Fed decision. AVAX has also declined as buyers who benefited during January’s comeback start harvesting profits. It was trading at $20, which was a few points below the year-to-date high of $21.84. The coin has jumped by about 90% from the lowest point in 2022.
AVAX had a great January
Avalanche is a leading alternative to Ethereum. Some of its important features are that it is highly interoperable, has faster speeds, and has extremely low transaction costs. Avalanche has been used to build some popular apps in the ecosystem are Wonderland, AAVE, Benqi, Trade Joe, and GMX.
Avalanche has had a strong performance in 2023 as the amount of inflows in the ecosystem has jumped sharply. For example, Wonderland has seen its TVL jump by 8.45% in the past 30 days. Similarly, AAVE, Benqi, Trader Joe, and GMX have seen their assets jump by over 20% in the same period.
At the same time, the amount of fees in the ecosystem has been in an upward trend. The supply side fees in January peaked at $42.5 on January 1. In all, the fees collected in the ecosystem were better than in the previous month. They have risen by over 80% in the past 30 days.
The next key catalyst for the AVAX price will be the upcoming Fed decision. As we saw in September, crypto and stock prices surged ahead of the Fed decision. They then plunged when the Fed decided to continue with its hawkish tone.
Economists expect that the Fed will continue hiking interest rates when it concludes its meeting on Wednesday. They believe that the bank will hike by 0.50% for the second straight month. It will also warn that it will continue hiking rates in the coming months.
AVAX price forecast
The 4H chart shows that the Avalanche price has been in a strong bullish trend in the past few days. It rose to a high of $21.82, the highest level in months. The coin has formed an ascending channel shown in green.
It has also jumped above the 25-day and 50-day moving averages. Now, it seems like the bearish momentum is fading. Therefore, there is a likelihood that the coin will continue falling as sellers target the ey support at $18.