Avalanche was ‘undervalued’ before posting 79% weekly gain: Analysts

December 12, 2023 Coin Telegraph

Avalanche eyes 60% rally as AVAX price breaks out of bull flag

December 18, 2021 Coin Telegraph

Altcoin

The bullish setup also emerged as crypto custodian BitGo announced that it would add AVAX to its service portfolio.

Avalanche (AVAX) strengthened its case for a potential upside run towards $160 in the coming sessions as it broke out of a classic bullish pattern earlier this week.

Dubbed "bull flag," the pattern emerges when the price consolidates lower/sideways between two parallel trendlines (flag) after undergoing a strong upside move (flagpole). Later, in theory, the price breaks out of the channel range to continue the uptrend and tends to rise by as much as the flagpole's height.

AVAX went through a similar price trajectory across the last 30 days, containing a roughly 100% flagpole rally to nearly $150, followed by over a 50% flag correction to $72, and a breakout move above the flag's upper trendline (around $85) on Dec. 15.

*AVAX/USD daily price chart featuring Bull Flag pattern. Source: TradingView*

AVAX price continued rallying after breaking out of its bull flag range, reaching almost $120 on Friday but eyeing a further leg up towards its bullish continuation target near $160. The level appeared after adding the height of AVAX's flagpole, which is around $75, to the current breakout point near $85.

A week full of bullish AVAX events

The recent buying period in the Avalanche market picked momentum also because of a flurry of positive catalysts this week.

AVAX jumped nearly 10.50% on Tuesday as Avalanche added the native version of USDC, a dollar-pegged stablecoin issued by Circle, on its blockchain.

Additionally, a report penned by Bank of America analysts published on Dec. 10, called Avalanche a viable alternative to the leading smart contract platform Ethereum. That coincided with AVAX gaining another 16%.

*AVAX/USD daily price chart featuring key events in the week ending Dec. 19. Source: TradingView*

On Thursday, AVAX rallied to its two-week high after BitGo, a crypto custodian with over $64 billion worth of assets under management, announced that it would support the token.

Nonetheless, a modest selloff at the local price top pushed AVAX lower. Th recover Friday as Avalanche announced that it has collaborated with web3 accelerator DeFi Alliance to launch a gaming accelerator program.

1/ Avalanche is collaborating with @DeFiAlliance to bring its accelerator programs to the Avalanche community

Apply by Jan 7 here: https://t.co/6HcJOLxKxA

Before you apply, check these reasons why Avalanche should be your preferred platform: pic.twitter.com/GhdHBhQNgb
— Avalanche (@avalancheavax) December 17, 2021

All the events mentioned above pointed towards the Avalanche ecosystem's growth. For instance, with USDC, the project promised to provide a viable alternative to Ethereum's highly expensive Tether (USDT) stablecoin transactions.

Moreover, by gaining BitGo as AVAX's institutional custodian, Avalanche appears to be prepping for catering to accredited investors. Mike Belshe, CEO of BitGo, explained:

“Institutional custody is not the same as retail custody, and BitGo wallets and custody were designed from the ground up to meet the needs of institutional investors, and BitGo is the only independent qualified custodian focused on building the right market structure and facilities to enable institutions to enter the digital asset space with confidence.”

AVAX price risks

One of the remaining downside risks around AVAX concerns the crypto market performance, on the whole.

In detail, AVAC rallied in a week that witnessed the entire cryptocurrency market capitalization lose more than $114 billion, with leading crypto assets Bitcoin (BTC) and Ether (ETH) plunging over 7% and 5% week-to-date. Concerns over the Federal Reserve's tapering plans catalyzed the market selloff.

Therefore, it appears that traders looked at AVAX as their short-term hedge against the crypto market drop, largely driven by a string of positive news.

*AVAX/BTC weekly price chart. Source: TradingView*

Moreover, the AVAX/BTC pair was up nearly 40% week-to-date at around 0.00245 BTC at the time of writing, with the pair's relative strength index (RSI) entering overbought territory. That could prompt AVAX to weaken against BTC in the coming sessions.

A similar outcome may be possible in AVAX/USD's case as its weekly RSI treads near overbought levels.

*AVAX/USD weekly price chart. Source: TradingView*

However, the pair is likely to retain its bullish bias as long as it holds above its 20-week exponential moving average (20-week EMA) as support. As shown in the chart above, the green wave has been capping AVAX's downside attempts since August 2020.

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.

Avalanche soars to new highs after Deloitte adoption — But risks emerge for AVAX price

November 18, 2021 Coin Telegraph

Adoption

The "Big Four" accountant announced that it would leverage Avalanche's blockchain for a new project.

Avalanche (AVAX) rose to a new price high on Nov. 18 and posted weekly gains after its developer, Ava Labs, entered a partnership with "Big Four" accountant firm Deloitte.

The AVAX price reached a little over $110 after rising circa 16% week-to-date (WTD), with its circulated market cap hitting $23.76 billion, almost 0.93% of the total crypto market cap.

In contrast, AVAX's top rival tokens, including Bitcoin (BTC) and Ether (ETH), fell by over 13% and 12.50% WTD, respectively.

*Top 15 crypto tokens and their performance in the past seven days. Source: TradingView*

AVAX adoption FOMO

AVAX picked its bullish cues from Deloitte's decision to use the Avalanche blockchain for building a disaster relief platform.

The deal, according to Avalanche's founder Emin Gün Sirer, would "help state and local governments easily demonstrate their eligibility for federal emergency funding." Avalanche's blog post further noted that their blockchain solutions would assist Deloitte in "minimizing fraud, waste, and abuse," which is prevalent in existing disaster management solutions.

In detail, AVAX works as an in-house payment method for Avalanche, i.e., a basic unit of account between the multiple subnetworks created on the Avalanche platform. Users also employ AVAX to earn passive income by staking their coins on the network.

AVAX's potential use case in the upcoming Deloitte disaster management systems prompted traders to make bold bullish calls. Newsquake, a Cointelegraph Markets Pro service, successfully identified the bullish sentiment as a potential market-moving event in real-time ahead of the AVAX price boom.

*VORTECS™ Score (green) vs. AXS price. Source:* *Cointelegraph Markets Pro*

Meanwhile, the Cointelegraph Markets Pro's VORTECS™ Score flipped green on Nov. 12, prior to AVAX climbing to new highs. The VORTECS™ Score is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

AVAX technical outlook

Pseudonymous market analyst "Seq" tweeted a rocket emoji sign to indicate their long-term upside bias for the Avalanche token based on the Deloitte adoption.

Probably nothing, only Deloitte, the largest accounting firm in the world that provides services to nearly 90% of the Fortune 500 choosing Avalanche for a federally approved disaster recovery platform to help state and local governments with federal emergency funding!$AVAX https://t.co/GHzIWuSjfx
— Seq (@CryptoSeq) November 16, 2021

Another analyst, Nico, noted that AVAX's latest price climb accompanied a rise in trading volumes, proving that the current climb had strong momentum behind it, adding:

"Looking for it to HODL around the ATH area, aiming for a retest/flip as continuation. If happens, then looking for $210k+"

Nevertheless, AVAX's climb this week also made it an overbought asset based on its relative strength index (RSI) signals. As a result, AVAX became overheated.

The AVAX price dropped by more than 10% on Nov. 18 after hitting its record high of $110. Furthermore, the selling pressure intensified as the Avalanche token tested its upward sloping resistance trendline (dotted) that constituted a rising wedge in conjugation with the lower ascending trendline support below (the black trendline).

*AVAX/USD three-day price chart. Source: TradingView*

Ideally, the AVAX price may continue rising until/ahead of hitting the apex (the point at where its two trendlines converge). Then, it would risk dropping lower by as much as the maximum height between the two trendlines. That roughly puts AVAX en route to $90.

A clear bearish divergence between a rising AVAX price and its falling RSI also hints at the token's weakening upside momentum.

Avalanche recovers from Evergrande-led sell-off as AVAX rebounds over 30%

September 22, 2021 Coin Telegraph

Altcoin Watch

The sharp bounce back in the Avalanche market still faces risks of exhaustion as the price forms a bearish wedge setup.

Avalanche (AVAX) prices recovered on Sept. 22, paring a portion of losses that hit cryptocurrencies at the beginning of this week, led by worries about potential contagion in China’s housing market.

The AVAX/USD exchange rate surged by as much as 12.05% to log an intraday high at $66.08. The pair’s gains came as a part of an interim rebound that started Tuesday after it bottomed out at a local low of $50.68. As a result, AVAX’s net rebound stretched by up to 30.37%.

Cointelegraph’s VORTECS™ Score also flipped bullish ahead of the Avalanche token rally.

*AVAX price vs. VORTECS™ Score. Source: Cointelegraph Markets Pro*

The VORTECS™ Score is an algorithmic indicator comparing historical market and social conditions around each coin to those currently observed. Exclusively available to subscribers of Cointelegraph Markets Pro, each asset’s VORTECS™ Score indicates whether the present combination of the coin’s market and social metrics is historically bullish, bearish or neutral.

As shown in the chart above, the asset’s VORTECS™ line turned green (corresponding to values above 66) on Sept. 22 against a price of $61.22. Later, AVAX logged sizable gains.

Avalanche raises $250 million

On Monday, the Avalanche token’s price had fallen by 18.18% to $57.34. Its losses imitated concerns across the global market as investors weighed the downside risks coming from the Evergrande debt crisis. As a result, all the major cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), fell in sync with global stock bourses.

*The performance of top 15 crypto tokens on a 24-hour adjusted timeframe. Source: TradingView*

The bearish shock in the Avalanche market came despite its healthy fundamentals. In detail, AVAX/USD had surged to a new record high at $77.37 on Binance on Sunday, days after raising $230 million in an AVAX sales round led by Polychain and Three Arrows Capital.

Avalanche’s funding came against the backdrop of top rival Ethereum’s ongoing network issues, including bandwidth congestion and higher transaction fees. The young blockchain project, which claims to process over 10,000 transactions per second (TPS) compared to Ethereum’s 13 TPS, already has more than 270 projects building atop its public ledger, including Tether, SushiSwap, Chainlink, Circle and The Graph.

“AVAX aims at a new price discovery above $100 in the medium to long term,” said Gustavo De La Torre, Business Development Director at N.exchange, in a statement to Cointelegraph.

“The growth potential can be supported by the fundamental utility, which presents it as a major competitor to the Ethereum blockchain as a smart contract hub.”

Bearish technicals

Despite its recovery, the AVAX/USD rate rally may reach a point of exhaustion as it forms a textbook bearish pattern.

Dubbed as a rising wedge, the structure appears when the price consolidates between upward sloping support and resistance trendlines looking to converge at a later point. Rising wedges are usually bearish reversal patterns, with price targets located at a length equal to the structure’s maximum height.

Avalanche prices appear to have been fluctuating inside a rising wedge pattern. As a result, the maximum net distance between the structure’s upper and lower trendline comes to be $19.51.

*AVAX/USD daily price chart featuring rising wedge setup. Source: TradingView*

Depending on the breakout point, the AVAX/USD wedge target could be $19.51. The chart above assumes two breakout levels based on their historical significance as support and resistance. As a result, Avalanche risks falling anywhere between $42.30 and $58.69 in the coming sessions.

Avalanche Price