Avalanche Price Soared After the Amazon Deal: Be Careful!

Avalanche was the talk of town on Thursday as the token surged by more than 30%. This AVAX price rally happened as investors reacted to a new deal between Amazon and Avalanche. The token soared to a high of $16.52, which was the highest point in months. It has jumped by more than 40% from the lowest point in 2022.

Avalanche and Amazon deal

The biggest crypto news of this year is the deal between Amazon and Avalanche. Amazon is the biggest e-commerce company and the largest cloud computing provider in the world. Avalanche, on the other hand, is one of the biggest smart contract platforms in the world.

In a statement, Avalanche said that Amazon will use the blockchain in its cloud computing product for both companies and governments. AWS will support Avalanche’s infrastructure and dApp ecosystem while node operators will be able to run in AWS GovCloud. 

Another part of the deal will see Ava Labs become a member of the AWS Partner Network. This means that the company will help customers deploy custom offerings on AWS. For a start, it will add Subnet deployment as a managed service to the AWS Marketplace. In a note, the president of Ava Labs said:

“AWS Activate is an excellent resource for developers to bring apps to the masses with Avalanche’s trailblazing speed, security, and scalability at their core.”

This deal is a samp of approval for Avalanche. For one, there are hundreds of similar projects that include Ethereum, Aptos, Solana, and BNB Chain. It is also an important thing because of the scale of Amazon since it is one of the biggest companies in the world.

However, Avalanch still faces numerous challenges. For example, its DeFi ecosystem is deteriorating, with the total value locked falling from over $12 billion to just $800 million.

Avalanche price prediction

Historically, crypto prices tend to soar when there is a major announcement. However, these gains tend to be short-lived as the enthusiasm fades. A look at the four-hour chart shows that the token soared and moved above the key resistance level at $14.40, the highest point since December 13. The coin moved above all moving averages. 

Therefore, the coin will likely continue falling and retest the key support level at $14.40. If this happens, it will then resume the bullish trend and retest this week’s high of $17.