Avalanche’s $50M Initiative Fails To Arrest AVAX Price’s Plunge
Key Takeaways:
Avalanche introduced new developments to strengthen its adoption.
However, AVAX price continued to fall despite the bullish cues.
The token has erased its 2023 gains.
NEW DELHI (CoinChapter.com) — Blockchain platform Avalanche formed a critical partnership and introduced a new initiative to further the adoption of its native token, AVAX. The cues helped AVAX prices paint a minuscule recovery over the weekend after dropping to new 2023 lows.
Furthermore, the downtrend resulted in AVAX falling nearly 56% from 2023’s high to reach a daily low near $10 on Aug 27. Despite AVAX bulls’ best efforts, the Avalanche token’s price is currently trading at levels the token last saw in late July 2021.
AVAX price rallied 3% since Aug 26 to reach a daily high near $10.3 on Aug 27. However, bears pushed down the token’s gains, underscoring the selling pressure against the token.
If AVAX price fails to recover, the Avalanche token might drop to the support near $9.8. Furthermore, breaching the immediate support level might result in AVAX price dropping to the support near $9.1, a level AVAX price last reached in Jan 2021.
On the other hand, should bulls manage to continue the rally, AVAX price might rise to the resistance near $10.6. Flipping the immediate resistance might help the Avalanche token price target the 20-day EMA (red wave) resistance near $11.2 before downside corrections pared gains.
Although AVAX prices recovered over the weekend, the token’s relative strength index remained oversold, with a value of 27.31 on the daily charts.
Avalanche Launches $50 Million Initiative
The Avalanche Foundation announced the creation of $50 million initiative to buy ‘tokenized assets‘ that users have minted on the Avalanche blockchain. The program, called the Avalanche Vista, would help demonstrate the importance of tokenization, Avalanche said in a blog post.
Tokenization refers to creating a digital representation of a real life object on a blockchain.
The Avalanche team claimed that the Vista program would help drive the growth of tokenization in the crypto and specifically the on-chain finance sector “by demonstrating the merits of applying blockchain rails” to traditionally manual use cases like asset issuance, settlement, etc.
Asset tokenization isn’t just the future of capital markets, it’s a critical driver of the present. The groundswell of momentum across institutions building on-chain has been astounding, and the Avalanche Foundation is taking a big leap forward with this initiative.
Said John Wu, President of Ava Labs.
The cross with real-life application could help the blockchain platform accelerate development, while providing new users with exposure to its native token, AVAX.
However, Avalanche’s recent token unlock, which introduced 9.54 million AVAX tokens to the market, worth $97.2 million at the time, could have added to the bearish cues against the token.
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Filed under: Bitcoin - @ August 27, 2023 9:47 pm