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  • Writer's pictureFNL T

Avalanche conquering the Blockchain Trilemma? and Trading Charts

Avalanche is the fastest?

To better understand why Avalanche has an advantage on the current playing field, you must first understand the Blockchain Trilemma.

"The blockchain trilemma is a concept coined by Vitalik Buterin that proposes a set of three main issues — decentralization, security and scalability — that developers encounter when building blockchains, forcing them to ultimately sacrifice one "aspect" for as a trade-off to accommodate the other two"(

In other words, developers have had to knowingly choose which weakness or weaknesses may exist within each blockchain. Until now that is- Avalanche appears to have solved all 3 aspects with its own consensus algorithm and validators.

Avalanche and its AVAX coin do not use a central leader to process transactions that get verified by others. Instead Avalanche unveiled its own consensus mechanism referred to as directed acyclic graph (DAG) protocol. Using this DAG protocol, all nodes may process and verify transactions simultaneously allowing an instant finalization. AVAX and its DAG protocol is the fastest execution of smart contracts in the crypto world.

Avalanche also has the most validators securing its activity of any proof-of-Stake protocol (

With a decentralized DAG protocol, the enhanced security within including numerous validators, and the fastest processing speeds in the crypto space enabling instant scalability, Avalanche is poised to hold the main stage on crypto for time to come. Mainstream crypto platforms such as have begun integrating Avalanche into their website.

Now that we know a little about Avalanche let's talk trading.

Starting with a daily chart(tradingview), we can see that Avalanche has initiated a pleasant looking uptrend with a series of higher highs and higher lows starting between July and August. The most recent retracement on the daily charts fell back to a perfect .618 before closing a turnaround at the 50% mark giving me a green light for a long position. Not only is Avalanche going up, but we have a pullback to .618 and a good-looking turnaround for an entry point here. I would still be adding to a position in Avalanche now even if I thought I was late to this move after yesterday. The headroom to the ATH right now around $80 gives confidence to the upward direction. You might anticipate possible rejection around $70 where the market struggled to get above once in September then again in October.

Now that we may want to trade Avalanche let's look a little closer for entries on a 2hr chart.

Trading view has an update where they delete my drawings if I walk away from my computer for a few minutes.

A market order now or limit order between current price and $58 would be my first entry point and green light on this crypto for at least 75% of my entire desired position. Using the bottom of the most-recent up channel as a target for an entry point helps give me the best chance of the market turning upward when I get in.

Using the same concept for entering on a bigger view, I would then place limit orders to scale in. One buy order will be just above $50 where the market hit a strong bottom in September then again in October (making sure to catch the wick from October with my limit order). The second limit order would be around $40. This $40 is just above an area the market created a triple tap while struggling to break above 3 separate times- in March, April, and again May. Early September shows the perfect retest of an area exhibiting the common tendency of the market turning what was a ceiling into a floor (sell level often becomes a buy level after being broken).

I am not a financial advisor and my goal is not for anyone to copy my trade entries, but rather to understand what I'm looking for in a way that they may recreate in their own decision-making processes over time on any market.

Thank you- FNL T


FNL content including, but not limited to, articles, podcasts, videos, live streams, and websites are intended for informational purposes and should NOT be considered financial, investment, nor trading advice. Cryptocurrency, futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one’s financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.


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1 Comment

Thank you for this article! I've been hearing about AVAX for awhile and this convinced me to pull the trigger. I also put LO's at $50.17 and $40.17 in agreement with your conclusion! Long term AVAX looks strong

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