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Quick analysis of the situation
If you’ve been paying attention to the crypto world lately—specifically the Avalanche ecosystem—you’ll know that AVAX has been strutting its stuff like a peacock at a fashion show. Just last week, it elbowed its way to a seven-month high of $36.1 before retreating to the comfort of the $34 area. But as any savvy trader knows, what goes up must navigate some serious resistance before continuing its ascent. So, is AVAX ready to break free, or are we destined for another dip into the dreaded $29 territory?
Institutional Momentum: Fueling the Avalanche Fire
Let’s be real: institutional money has a way of jazzing things up. This week, Avalanche has seen a bit of buoyancy after overcoming a mid-week hiccup. Why? Because it seems like everyone from hedge funds to crypto aficionados is circling like vultures around this intriguing ecosystem.
Take AgriFORCE Growing Systems, for example—turning heads as it reintroduces itself as AVAX One, the first Nasdaq-listed entity dedicated to Avalanche. They're not shy about their ambitions, aiming to raise a cool $550 million to buy up the digital currency. You know things are getting serious when even the big players on Wall Street start noticing.
And don’t sleep on the Avalanche Foundation, either. They have their eye on raising a staggering $1 billion to roll out two U.S.-based crypto treasury vehicles. Talk about ambition! The cherry on top this week was South Korea's BDACS launching KRW1, the country's first Korean won-pegged stablecoin, right on the Avalanche network. The excitement is palpable!
Riding the Wedge: The Monthly Close Drama
Now, let’s talk trends for a moment! Analyst Rekt Capital has suggested that we’ve got a solid three-month rally going on, all hugging the cozy confines of a Macro Wedge pattern. But he also throws in a caveat: there’s more work to be done. Consider this the cliffhanger of our AVAX saga.
In the past month, AVAX has managed a commendable 43% uptick, turning the once-stalwart $30 level into a newfound safety net. It has valiantly tried to conquer the $35 resistance not once, but twice, only to be sent back to its previous levels like a child returning home after curfew.
The next big hurdle lies at around $38.40. If AVAX can close the end of September dancing above this line—holding the party for a little post-breakout retest as support—it would shift the narrative into a much more bullish territory. In fact, this could open the floodgates to highlights reminiscent of mid-2021 when the skies seemed a little sunnier for the cryptos.
But let’s not get too carried away. If AVAX lacks the gall to secure that monthly close above $38.40, it might just plummet back down to the $29-$30 comfort zone, with the very real risk of slipping further into the low $23.6 abyss.
Final Thoughts: Ready for Takeoff or Another Delay?
As of now, AVAX is hovering around $33.75, showing a slight decline on the daily timeframe. Will it rally into Q4 with gusto, or flounder in indecision? The stakes are high, and the upcoming weeks will be pivotal.
So, buckle up, crypto lovers! It looks like the Avalanche is gearing up for a wild ride—and whether it heads downhill or gains altitude depends on how it navigates this stubborn resistance. For now, let’s just hope it doesn’t turn into an avalanche of disappointment!
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Image(s) are provided by Unsplash and/or other free sources. They are illustrative and may not represent the content truly.
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Please, behave!