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Layer 1 blockchains are having mixed fortunes in this crypto bull market. Where Bitcoin (BTC) and Solana (SOL) are powering higher, certain other blockchains are still in the doldrums. $ADA and $AVAX are two of these. Can they go higher?
How many layer 1s are needed?
One question on whether layer 1 blockchain networks can be viable, is “how many do we need?”. It can be argued that layer 1s can specialise in various niches, and therefore remain valid. However, layer 1s that were developed during the last crypto bull market, or even the one before that, will arguably have old tech, and therefore, the second question is: “will they be able to cut it for super fast and cheap transactions, and the required scalability and security for tomorrow’s technology requirements?”
$ADA breaks out, but no fireworks yet
Source: TradingView
The daily chart above shows that the $ADA price has pushed through the downward-sloping trend line. However, it hasn’t really taken off, and has come back to rest on a very long time support line, which goes all the way back to February 2021. A bounce here is needed, or the price could fall through and retest the trend line.
Source: TradingView
Assuming a bounce does take place from the current price of $0.42, near term targets, according to fibonacci levels, are $0.50, $0.62, and $0.70. Inspirational targets for $ADA would be $1.11, and $1.61.
$AVAX needs to bounce here
Source: TradingView
The $AVAX price may be a better proposition than $ADA, but this remains to be determined. $AVAX has also broken its downward trend and currently the price has settled back onto the $30 support. If this support can hold, the next major resistance at $39 awa
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Author: Laurie Dunn
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