Avalanche Recovers From Massive Evergrande Sell As AVAX Bounces Over 30%

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Avalanche prices (AVAX) rebounded on September 22, reducing some of the losses that hit cryptocurrencies earlier this week, amid concerns about potential contagion in the Chinese housing market.

The AVAX / USD exchange rate jumped 12.05% to an intraday high of $ 66.08. The pair’s gains came as part of an intermediate rebound that began on Tuesday after hitting a local low at a local low of $ 50.68. As a result, AVAX’s net rebound stretched to 30.37%.

The TBEN VORTECS ™ score also turned bullish ahead of the symbolic Avalanche rally.

AVAX price in relation to the VORTECS ™ score. Source: TBEN Markets Pro

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

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As shown in the chart above, the asset’s VORTECS ™ line turned green (corresponding to values ​​above 66) on September 22 from a price of $ 61.22. Later, AVAX made significant gains.

Avalanche raises $ 250 million

On Monday, the Avalanche token had fallen 18.18% to $ 57.34. Its losses mimicked worries in the global market as investors weighed down risks from the Evergrande debt crisis. As a result, all of the major cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), have synchronized with global stock exchanges.

The performance of the top 15 crypto tokens over an adjusted 24 hour period. Source: TradingView.com

The downside shock to the avalanche market came despite its healthy fundamentals. In detail, AVAX / USDT hit a new high at $ 77.37 (Binance data) on Sunday, days after raising $ 230 million in an AVAX sell cycle led by Polychain and Three Arrows Capital.

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Avalanche’s funding came against the backdrop of its main rival Ethereum’s lingering 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 over 270 projects built on its public ledger, including Tether, SushiSwap, Chainlink, Circle and The Graph.

“AVAX is targeting a new price discovery above $ 100 in the medium to long term,” said Gustavo De La Torre, director of business development at n.exchange, in a statement to TBEN.

“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 techniques

Despite its recovery, the rally in the AVAX / USD rate could reach a point of exhaustion as it forms a classic downtrend.

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Dubbed the Rising Wedge, the pattern appears when price consolidates between upward sloping support and resistance trend lines seeking to converge at a later point in time. Ascending wedges are usually bearish reversal patterns, with price targets located at a length equal to the maximum height of the structure.

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Avalanche prices appear to have fluctuated within a rising wedge pattern. As a result, the maximum net distance between the upper and lower trendline of the structure is $ 19.51.

AVAX / USD daily price chart with Rising Wedge setup. Source: TradingView.com

Depending on the break point, the AVax / USD Wedge target could be $ 19.51 lower. The chart above assumes two breakout levels based on their historical importance as support and resistance. As a result, Avalanche is at risk of dropping between $ 42.30 and $ 58.69 over the next few sessions.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN.com. Every investment and trading move comes with risk, you should do your own research before making a decision.