A U.S. government wallet recently moved 5,500 Avalanche (AVAX) to a new address, suggesting that prices were correcting from a recent pump.
Details obtained from the Avalanche blockchain indicate that 298.9369 AVAX, approximately $5.5K, was moved from a wallet labeled “U.S. Government: Brian Krewson Confiscated Funds” to another address.
The card transaction cost only 0.00105 AVAX. The gas price remained at 50 GWEI, the standard rate for the current network interaction.
Avalanche’s Reaction to the Government’s Move
After the transaction, the AVAX market displayed a slight decline in value. AVAX has been down by 0.27% in the last 24 hours and is trading at $18.60.
Notably, this dip is relatively insignificant and is one of the corrections in its price trajectory, considering the earlier increase.
The government activity has not affected investors’ interest and engagement, as the market is growing at $7.44 Billion.
The technical chart shows AVAX’s position. Looking at its recent market behavior, AVAX has been charting a downward trend inside a defined channel in the past few months.
AVAX is currently testing support around $17, with recent lows forming the zone. The chart’s Money Flow Index (MFI) is also notable at 41.78.
This indicates the strength of the money that flows in and out of security. A neutral position would indicate neither overbought nor oversold, implying a stabilized or sideways market in the near term unless something external causes more pressing issues.
Looking ahead, the key area is the resistance zone above 50. AVAX can recover on these levels if it breaks through the current downward channel and starts overcoming the resistance levels.
The move will automatically mean a strong, bullish reversal. Still, it faces resistance as regulatory scrutiny continues to rear its head, potentially temporarily restraining it.
AVAX Heading for a Short-Term Rally?
Other analyst charts show an inverse head-and-shoulders pattern. This pattern is usually considered bullish in technical analysis and is often interpreted as a signal of a possible reversal of the previous downward trend.
A breakout from the $19 price level is clear. Importantly, a breakout from this pattern might lead to upward movement in AVAX’s price.
A horizontal line marking resistance around $19 now plays the role of the breakout support pivot, and this is likely to set the tone for the asset’s price action going up.
As per the market analysts, though hovering around the $82,000 mark would narrow Bitcoin’s consolidation, it may also act as a macroeconomic catalyst for the altcoin market.
It is well known that Bitcoin price action is interconnected with the altcoin markets, yielding parallel BTC gains to the altcoin sector.
Upon analyzing the chart and all the external factors in play, the analyst suggests a 25–30% rally in AVAX’s price from its current price could be realistic.
This assumes Bitcoin will continue being bullish and is confirmed technically with the breakout at $19.
The post US Government Moving Avalanche (AVAX), Price Takes A Turn appeared first on The Coin Republic.
The Coin Republic – Read More