AVAX price edges closer to 40% breakout as Avalanche allocates $3 million to Stake DAO

  • AVAX price is teetering below the upper trend line of a parallel channel, hinting at a breakout.
  • A decisive close above $61.09 will confirm the start of an uptrend to $75.32.
  • Avalanche Foundation is allocating $3 million as incentives across all Stake DAO Avalanche strategies.

AVAX price has been on a downward trend for nearly a month but shows signs that a recovery rally will begin soon. A decisive close above a crucial resistance barrier will serve as confirmation of a new uptrend’s start.

Avalanche allocates $3 million as incentives 

Avalanche Foundation made its commitment palpable as it announced that $3 million AVAX from the Avalanche Rush program would be distributed across all Stake DAO Avalanche Strategies.

This allocation is somewhat similar to the liquidity mining incentives where projects distributed a certain number of their tokens as incentives for providing liquidity. In this case, however, Avalanche Rush has selected Stake DAO to be distributed AVAX on any Avalanche-based strategies present on their platforms. 

The announcement further explains,

Avalanche Rush is a flagship incentive program launched to scale DeFi and create a more accessible, decentralized, and cost-effective ecosystem through the allocation of AVAX to a select number of established and emerging DeFi protocols.

This step from Avalance Foundation aims to drive adoption, capital inflow and curious investors to Avalanche’s other connected platforms, with the hope of making DeFi more accessible. Since this is a boost to its fundamentals, investors can expect AVAX price to reflect this soon. Interestingly, the technicals hint at an incoming bullish outlook for AVAX price.

AVAX price prepares to launch

AVAX price set up a swing high on September 23 at $79.68, which served as a reversal point for the uptrend. Since then, Avalanche price has dropped 30% to where it currently stands, $56.42. This descent created three distinctive lower highs and two lower lows. Connecting these swing points using trend lines results in the formation of a descending parallel channel.

A decisive close above the upper trend line of this technical formation will indicate a breakout. However, investors need to wait for a close above $61.09 as a secondary confirmation. Assuming AVAX price succeeds, it will be due for an ascent to retest the hurdles at $75.33 and $79.68.

This run-up for AVAX price would constitute a 41% ascent from its current position to $79.68.

AVAX/USDT 12-hour chart

AVAX/USDT 12-hour chart

While things are leaning bullish for AVAX price, a breakdown of the $50.58 support floor will indicate that the sellers are overwhelming the buyers and create a lower low, invalidating the bullish thesis.

In such a case, market participants can expect Avalanche to slide to $42.40.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bank of America bullish comments on metaverse push Axie Infinity and Sandbox closer to breakout

Bank of America's strategist made bullish remarks about the metaverse, triggering a spike in interest in Axie Infinity and Sandbox tokens. The rices of the two metaverse tokens continue climbing with increased interest from investors. 

More Axie Infinity News

Polkadot price ready to breakout after DOT forms double bottom

Polkadot price began turning around and moving higher on November 28. It is currently resting on support after a brief pull-back, with the potential for using this floor as a launchpad higher. A resumption of the bullish impulse will provide fresh confirmation for the new uptrend.

More Polkadot News

Bitcoin Weekly Forecast: The bull and the bear case for BTC

Bitcoin price saw a recent bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. With directional bias and choppy price action, BTC is likely to experience massive volatility as the situation resolves over time. 

More Bitcoin News

Berkshire Hathaway’s Charlie Munger wants US to ban cryptos like China

Charlie Munger considers cryptocurrencies bad for people and backs China on its cryptocurrency ban.In his previous interviews, Munger has shed light on the concept of “speculative excess” and “asymmetry of wealth.” 

More Cryptocurrencies News

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!