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.
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.
The token fell by another 7.5% the next day after the whistleblower website released the full report, including another unverified video featuring Roche.AVAX/USD daily price chart. Source: TradingView
In addition, Avalanche's intraday losses aligned with similar negative moves across other top crypto assets.
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.
$AVAX— Posty (@PostyXBT) August 30, 2022
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
Analyst BrechTP also anticipates the price to crash toward $14 based on a "head and shoulder" setup, as shown below.
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.AVAX/USDT two-hour price chart. Source: TraderSZ/TradingView
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.AVAX/USD weekly price chart. Source: TradingView
In other words, AVAX could rally by over 55% from its current price levels.
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