AVAX Price Corrects 50% Since March Highs — Can Avalanche’s Stripe Partnership Spark a Turnaround?
Avalanche Announces Partnership - Has the AVAX Price Bottomed? | Credit: Getty Images
Key Takeaways
- Avalanche announced a partnership with Stripe that extends to its wallet, Core.
- The AVAX price has corrected nearly 50% since its yearly high in March.
- Is the AVAX correction finally over, or will May bring more downside?
The AVAX price bounced on April 13, briefly halting a correction that had been ongoing since March 18. However, it failed to sustain its upward movement and risks falling toward its previous lows again.
Avalanche is back in the spotlight after announcing a partnership with payments giant Stripe on April 29. Will this be enough to allow the bounce to continue, or are new lows in store for May?
Stripe Makes U-Turn, Partners with Avalanche
On April 25, Stripe announced it will accept cryptocurrency payments. Shortly after, Avalanche announced a partnership , allowing users to purchase AVAX directly through Stripe. The partnership extends to Avalanche’s native wallet, Core.
Moreover, eight Avalanche applications will also integrate with Stripe, including GoGoPool and DeFi Kingdoms.
The announcement comes at an opportune time for AVAX, whose price has corrected nearly 50% since its yearly high in March and needs some positive news to kickstart a bounce.
AVAX Breaks Out From 750-Day Resistance
The AVAX price had fallen under a descending resistance trend line since its all-time high in November 2023. After three unsuccessful breakout attempts, AVAX finally moved above the it in December 2023. At the time, the trend line had existed for 750 days.
The upward trend culminated with a high of $65.39 in March 2024, which is the current yearly high. However, AVAX has fallen since, decreasing nearly 50%. If the current price holds, it will be the seventh consecutive bearish weekly close.
The correction was preceded by a bearish divergence in the weekly RSI (green). Now, there is a hidden bullish divergence developing (white), which could mean the bearish one played out.
But, the MACD still gives a bearish reading, since it has made a bearish cross (red icons). So, looking at a lower time frame is needed to determine if the correction is complete or if more downside is likely.
AVAX Price Prediction: Is the Correction Over?
The daily time frame shows that AVAX completed a five-wave upward movement (white) over 90 days between September and December 2023. It has corrected in the following 128 days, nearly finishing an irregular flat A-B-C correction (black). Even though the price reached its yearly high in March, the increase is a three-wave structure (highlighted), a sign that it is part of a correction.
If the count is accurate, AVAX is nearing the end of wave C, or has already reached it. Giving waves A:C a 1:1.61 ratio leads to a low of $28.60, very close to the April 13 low of $29.24. The sub-wave count (yellow) shows that the AVAX price is in the fifth and final sub-wave.
The low also coincides with the 0.618 Fibonacci retracement support level. So, while it is not certain if sub-wave five will truncate, leading to a higher low, or fall a little further and created a slightly lower low, it seems that the AVAX correction is coming to an end.
After it is, another upward movement that takes the price to a new yearly high is likely.
AVAX Downside Limited, May Outlook Promising
To conclude, the AVAX trend is likely bullish due to a breakout from a long-term descending resistance trend line. The 50% correction is also nearing its end, with the wave count suggesting that a maximum of another small decrease is possibly. Then, AVAX can resume its upward trend and reach a new yearly high.
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