Avalanche (AVAX) has shown a noteworthy resurgence, recording a 4% gain in its daily chart. This upswing comes on the heels of an announcement from Ava Labs regarding a significant update to the Avalanche-Bitcoin Bridge. The update, executed by the Bridge Nodes, has introduced a notable improvement in transaction speed for transfers from the Avalanche network to the Bitcoin Network.
AVAX, much like its cryptocurrency counterparts, has faced its fair share of price fluctuations. Presently, AVAX is trading at $9.43. A closer examination of the daily chart reveals that AVAX recently experienced a retracement to a pivotal support level that has remained intact since the summer of 2021. The integrity of this support block holds considerable importance for the future price trajectory of AVAX.
Should this support block fail to hold, the next potential support zones are $7.39 and $5.91, while resistance levels are $10.64. This retracement may present a viable buying opportunity, as AVAX has historically exhibited similar opportunities in the past, notably in December of the previous year and in June of the current year.
Presently, in line with many other alternative cryptocurrencies, AVAX appears to be in an overextended state, possibly indicating an impending relief rally back toward the 20 EMA (Exponential Moving Average).
Avalanche Bridge Security Upgrade
The Avalanche-Bitcoin Bridge has undergone an important upgrade today. This alteration is intended to allow ample time for Bridge Nodes to thoroughly examine data from both the blockchains during their screening process. The primary objective is to bolster detection and prevention mechanisms against potential misuse of the Bridge by malicious actors.
The update exclusively affects transactions from Avalanche to Bitcoin without impacting transactions in the reverse direction, the Avalanche-Ethereum Bridge, or other cross-chain bridging solutions such as LayerZero and Axelar. Furthermore, the requirement for a consensus of at least 75% of Bridge Nodes for transaction validation remains unchanged.
While this update may extend the time required for transfers from Avalanche to the Bitcoin Network, it aligns with previous updates to optimize the Avalanche Bridge for sustained cross-chain interoperability.
It reflects the network community’s commitment to fostering a supportive environment for trustworthy participants while discouraging malicious actors. Transactions identified as originating from malicious actors during the screening process will continue to be blocked as before.
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