Cardana (ADA) and Avalanche (AVAX) break out, but can they go higher?

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As a seasoned researcher with years of experience in the crypto space, I have witnessed the ebb and flow of various blockchain projects during different market conditions. The current bull market is no exception, as we see layer 1 blockchains experiencing varying degrees of success. While Bitcoin (BTC) and Solana (SOL) are powering higher, certain other projects like Cardano ($ADA) and Avalanche ($AVAX) are still in the doldrums.

In the ongoing cryptocurrency boom, the performance of Layer 1 blockchains varies greatly. While Bitcoin (BTC) and Solana (SOL) continue to surge, other blockchains such as Cardano ($ADA) and Avalanche ($AVAX) are currently underperforming. However, it’s important to note that market conditions can change rapidly in the crypto space. The potential for both $ADA and $AVAX to rise higher still exists.

How many layer 1s are needed?

“How numerous are the necessary layer 1 blockchains?” It is possible that each layer 1 network can focus on distinct niches, thereby preserving their relevance. Nevertheless, those layer 1s established during past cryptocurrency market booms may carry outdated technology and thus face the challenge of delivering fast, inexpensive transactions, as well as the necessary scalability and security for future technological demands.

$ADA breaks out, but no fireworks yet

The chart illustrates that the $ADA price has breached the descending trendline as of late. Yet, it hasn’t experienced significant growth and now hovers near a crucial support level, extending back to February 2021. A rebound at this juncture is essential to prevent further decline and potential retesting of the trendline.

If a price bounce occurs from the current level of $0.42, Fibonacci levels indicate potential short-term objectives at around $0.50 and $0.62, with a longer-term goal at approximately $0.70. Motivational milestones for Cardano ($ADA) are set at $1.11 and $1.61.

$AVAX needs to bounce here

The price of $AVAX could potentially be more attractive than that of $ADA, though this isn’t yet definitively true. Notably, $AVAX has managed to reverse its downward trend and presently rests on the stable support at $30. If this support endures, the significant resistance at $39 lies ahead. Meanwhile, a key level of support for $AVAX investors is $25; they would prefer the price doesn’t dip below that mark.

Examining the larger weekly perspective of $AVAX‘s price trend, it appears that the asset may have initiated an uptrend. However, reaching a significant milestone at $39 is essential for $AVAX to continue its progress. Surpassing this level could potentially reinforce the existing price framework and position the asset to rebound towards previous peak prices.

Do $ADA and $AVAX have enough time?

Based on my analysis of the cryptocurrency market and my experience as a long-term investor, I believe that both $ADA and $AVAX have the potential to recover and reach their all-time highs again. However, it will not be an easy feat and will likely require some time and patience.

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2024-07-23 17:17