Key Takeaways
Salvor, a peer-to-peer lending protocol for NFTs and memecoins, received $1 million in AVAX from the Avalanche Foundation. The money is set to help expand the Avalanche C-Chain through the Avalanche Rush Program.
The price of the AVAX token reacted positively to this news, spiking by 7% on Friday. However, it has fallen 11% since then, dropping to its ascending support on May 13.
Salvor’s integration into the Avalanche Rush Program is supported by a $1 million AVAX investment from the Avalanche Foundation. The platform lets people use their NFTs and memecoins as collateral for AVAX loans.
By helping secure loans without selling assets, Salvor aims to enhance capital efficiency for borrowers and lenders.
The platform also supports over 800 NFT collections, including prominent names like Dokyo, MadSkullz, Chikn, and Steady.
After reaching a peak of $65 on March 18, AVAX started to make a downturn. It fell 55% to a low of $30 on April 13, after which the price moved sideways. A horizontal range lasted 30 days, which could be a positive sign.
Its March peak was the ending point of an uptrend from October last year, which started at $9. This was a five-wave impulse, likely in a larger starting bull cycle, and its corrective stage began as it ended.
The following decrease led the price of AVAX to a 0.618 Fibonacci retracement – a typical stopping point for corrective waves. This is why we could interpret the sideways movement after that as a consolidative stage, establishing support before it can embark on a sustainable uptrend.
However, since it is still within the bounds of this range, a breakout above $40 would provide a clear signal. Until that happens, there could still be further drops. A bullish outcome is likely, because of the previously outlined conditions. As the price currently tests its significant ascending support at $32, which is also a pivot point, the interaction outcome will provide a first hint at its next primary direction.
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