AVAX Price Retraces 15% After Crypto Leaks Selloff, But Avalanche Can Still Bury Bulls
Avalanche (AVAX) bulls dismissed the sensational claims by a self-proclaimed whistleblower website that the project’s parent company, Ava Labs, paid lawyers to damage its competitors’ reputations.
The landslide price recovers after serious allegations
AVAX’s price established an intraday high of $19.75 on August 30, two days after a local low of $17.50, representing a 15% gain. The token’s modest recovery followed selling caused by a sensational CryptoLeaks report.
️ #Avalanche is the most growing topic in #crypto after an allegation that it #blockchain attempted to manipulate regulatory systems. After hitting a 7-week low about 9 hours ago, $AVAX is up +7.5% since. We are following how the news about this unfolds. pic.twitter.com/kk3zue4d3G
— Santiment (@santimentfeed) 29 August 2022
AVAX’s price fell 3.5% on August 26, the day CryptoLeaks released an unconfirmed video showing Kyle Roche, the partner at Roche Freedman, saying he might sue Solana, one of Avalanche’s top rivals, on behalf of Ava Labs.
Related: Ava Labs CEO Denies CryptoLeaks’ Claims as ‘Conspiracy Theory Bullshit’
The token fell by another 7.5% the next day after the whistleblower’s website has released the full reportincluding another unconfirmed video featuring Roche.
Additionally, Avalanche’s intraday losses were in line with similar negative moves across other top cryptoassets.
AVAX could rise 55%
Avalanche’s fundamentals are strongly tied to the overall cryptocurrency market, keeping it vulnerable to further downtrends.
Independent analyst PostyXBT noted that AVAX’s price could fall to the $13-$15 range next and to “keep BTC in mind” while placing a short position against the range.
Textbook short layout forming.
Only concern is deviation caused by $BTC going higher towards $20.8k.
Manage your position size accordingly and keep btc in mind when setting void levels pic.twitter.com/8wRgZxkOcv
— Posty (@PostyXBT) 30 August 2022
Analyst BrechTP also expects the price to crash towards $14 based on a “head and shoulders” setup, as shown below.
Related: Sharp drop in TVL and DApp usage preceded Avalanche’s (AVAX) 16% correction
Conversely, analyst TraderSZ looking AVAX’s price will continue its recovery trend in the coming days. His setup, as illustrated below, envisions the Avalanche token reaching roughly $30 in September.
The upside target is in line with AVAX’s prevailing “symmetrical triangle” layout. In particular, the price has retraced after testing the triangle’s lower trendline as support and now sees the structure’s upper trendline as its temporary upside target.
The upper trend line is close to TraderSZ’s price target of $30, as shown below.
In other words, AVAX can increase by more than 55% from the current price level.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
