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Is Avalanche’s (AVAX) Price Stability at Risk? Discover What Experts Predict!
In the latest avalanche news, Avalanche (AVAX) has displayed impressive price performance over the past month, spurred by increasing institutional interest in its ecosystem. However, a crucial resistance level now looms, potentially hindering its anticipated rally.
On Wednesday, Avalanche demonstrated resilience following a brief pullback earlier in the week and is currently testing the $34 support level. After dropping to $29, AVAX rebounded sharply, reaching a seven-month high of $36.1 on Tuesday, largely bolstered by institutional investments. Notably, AgriFORCE Growing Systems has rebranded as AVAX One, marking its entry as the first Nasdaq-listed entity dedicated to Avalanche. The company plans to raise $550 million to acquire AVAX, supported by notable investors like Hivemind Capital and Anthony Scaramucci of SkyBridge Capital.
In a significant development, the Avalanche Foundation is also on a fundraising mission, seeking to accumulate $1 billion to create two crypto treasury vehicles based in the U.S. Additionally, South Korean crypto custodian BDACS recently launched KRW1, the nation’s inaugural Korean won-pegged stablecoin, on the Avalanche blockchain. This follows Ava Labs’ strategic partnership with Toyota Blockchain Lab to develop the Mobility Open Network (MON), which aims to facilitate innovative use cases, including robotaxi fleets.
AVAX’s Monthly Close Holds Rally’s Key
Analyst Rekt Capital emphasized that while Avalanche has enjoyed a robust three-month rally within a Macro Wedge pattern, caution is warranted. There is “further work to be done” for a sustained bullish trend. Notably, AVAX has recorded a remarkable 43% increase over the past month, solidifying the $30 level as a support base. However, the cryptocurrency has struggled to maintain its position above the $35 resistance, having attempted to break through twice without success.
Since the beginning of 2024, Avalanche has been trading within a Macro Wedge pattern, fluctuating between its upper and lower boundaries. The recent rally has pushed the price closer to the pattern’s resistance zone, with breakout levels estimated around $38.40. Analysts suggest that for AVAX to maintain its bullish trajectory, it must close September above the Macro Downtrend, followed by a successful retest of this level as support. Achieving a monthly close above this threshold could pave the way for a bullish resurgence reminiscent of mid-2021 and early 2024.
Conversely, failing to secure a monthly close above the $38.40 area may prompt a retest of the $29-$30 support levels, with further risks of a decline toward the monthly opening price of $23.6. To effectively target the Macro Wedge resistance, AVAX must reclaim the $35-$36 zone, where a significant sell wall currently resides.
Despite these warnings, Rekt Capital noted that a retest of the support region could potentially extend base-building into Q4, ultimately setting the stage for a more sustainable breakout attempt in the future. As of now, AVAX is trading at $33.75, reflecting a modest 1% decline in the daily timeframe.
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In summary, while Avalanche’s recent performance has been promising, the journey ahead hinges on overcoming significant resistance levels. Keep a close watch as the market evolves!
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