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Avalanche Price Falls 11% Despite $1 Million AVAX Allocated to Salvor — Ascending Support Tested

Last Updated May 13, 2024 10:57 AM
Nikola Lazic
Last Updated May 13, 2024 10:57 AM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • AVAX fell by 11% after Salvor received $1 million in funding from the Avalanche Foundation.
  • Salvor allows users to secure AVAX loans using NFTs and memecoins.
  • AVAX consolidation may signal a sustainable uptrend if it gets above $40.

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.

How Significant Is This For Avalanche and AVAX? 

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. 

Avalanche (AVAX) Price Analysis 

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. 

AVAX
AVAXUSD Binance | Credit: Nikola Lazic/Tradingview

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. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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