In a major development in the Avalanche ecosystem, the AVAX token has launched its first public validator node, thereby marking the beginning of the AVAX token being an active participant in the ecosystem, instead of being a passive token holder. This is a clear indication of the AVAX token’s intent to contribute towards the growth of the Avalanche blockchain ecosystem.
The launch of the validator node gives AVAX several advantages. It enhances the position of the project in the Avalanche ecosystem, in addition to opening yet another revenue stream.
AVAX will play an essential part in the regulation and trust needed in the industry as it will be responsible for the validation of transactions in the network, thus securing its position in the DeFi industry.
Also Read: Avalanche (AVAX) Price Targets $100 Amid Institutional Derivatives Growth
Avalanche Holds Support With Reversal in Sight
However, the crypto analyst, Sniper Trading, highlighted that, AVAX has been testing a very important support level. Ticking at a current price of $12.00, the token has consistently attracted buying support at this level, which has always proven to be a very good support level in the past.
The traders looking at a potential buy opportunity will find this spot quite attractive, with the first target set at either $14.80 or $17.00, providing potential gains of either 23% or 42%. A target of either $18.50 or $21.00 could provide an even greater potential gain of either 54% or 75%.
A stop-loss below $11.40 is recommended to curtail possible losses. Market players will be keen to watch AVAX’s movements around this support area to determine the possibility of reversing the bullish trend.
Technical Indicators Suggest Bearish Pressure
The current market trends in the AVAX indicate bearish trends. The token is below the 20-period Exponential Moving Average (EMA), showing resistance at higher points. The increasing Bollinger Bands indicate high volatility in the market, while the bearish trend in the market is confirmed by the indicators.
The token is currently testing the $12.00 support level, but if it falls, it will test the lower support levels of $4.88. But a strong defence here could push the token to new highs.
Also Read: Avalanche (AVAX) Breaks Key Trendline as Price Eyes $18 Resistance
