AVAX price rebounds 15% after Crypto Leaks sell-off but Avalanche could still bury bulls
AVAX’s recovery aligns with similar upside moves across the top-ranking crypto assets.
Avalanche (AVAX) bulls snubbed the sensational claims made by a self-proclaimed whistleblower website that the project’s parent firm, Ava Labs, paid lawyers to damage its competitors’ reputation.
Avalanche price recovers from serious allegations
AVAX’s price established an intraday high of $19.75 on Aug. 30, two days after bottoming out locally at $17.50, amounting to a 15% rise. The token’s modest recovery followed selloffs incurred by a sensational CryptoLeaks report.
️ #Avalanche is the top rising topic in #crypto following a claim that its #blockchain was attempting to manipulate regulatory systems. After hitting a 7-week low about 9 hours ago, $AVAX is up +7.5% since. We’re watching how news of this unfolds. https://t.co/Ry1mGvdMap https://t.co/OHmNMkpAzS pic.twitter.com/kk3zue4d3G
— Santiment (@santimentfeed) August 29, 2022
AVAX’s price fell 3.5% on Aug. 26, the day on which CryptoLeaks released an unverified video showing Kyle Roche, the partner at Roche Freedman, saying that he could sue Solana, one of Avalanche’s top rivals, on behalf of Ava Labs.
Related: Ava Labs CEO denies CryptoLeaks’ claims as ‘conspiracy theory nonsense’
The token fell by another 7.5% the next day after the whistleblower website released the full report, including another unverified video featuring Roche.
In addition, Avalanche’s intraday losses aligned with similar negative moves across other top crypto assets.
AVAX can rise 55%
Avalanche’s fundamentals are strongly tied to the overall cryptocurrency market, which keeps it prone to undergoing additional downtrends.
Independent analyst PostyXBT noted that AVAX’s price could decline to the $13-$15 range next and to “keep BTC in mind” while placing a short position toward the area.
Textbook short set up forming.
Only concern being deviation caused by $BTC running higher towards $20.8k.
Manage position size accordingly and keep btc in mind when setting invalidation levels pic.twitter.com/8wRgZxkOcv
— Posty (@PostyXBT) August 30, 2022
Analyst BrechTP also anticipates the price to crash toward $14 based on a “head and shoulder” setup, as shown below.
Related: A sharp drop in TVL and DApp use preceded Avalanche’s (AVAX) 16% correction
Conversely, analyst TraderSZ sees AVAX’s price to continue its recovery trend in the coming days. His setup, as illustrated below, envisions the Avalanche token to reach approximately $30 in September.
The upside target aligns with AVAX’s prevailing “symmetrical triangle” setup. Notably, the price has rebounded after testing the triangle’s lower trendline as support and now sees the structure’s upper trendline as its interim upside target.
The upper trendline is near the TraderSZ’s price target of $30, as shown below.
In other words, AVAX could rally by over 55% from its current price levels.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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Author: Yashu Gola
