|

AVAX price rally comes to a grinding halt despite Amazon partnership and addition of USP stablecoin

  • AVAX price rally halted after yielding double-digit gains over the past week, between January 8 to 15, 2023.
  • The smart contract platform has officially confirmed that it will support the Platypus stablecoin, USP. 
  • Amazon Web Services chose Avalanche to bring scalable blockchain solutions to enterprises and governments through AVAX infrastructure and the dApp ecosystem. 

AVAX was chosen by Amazon Web Services (AWS) to develop blockchain solutions for enterprises and governments. AVAX is now an AWS partner and fully supports the smart contract’s infrastructure and dApp ecosystem. 

Also read: Twitter’s plan for crypto integration remains unknown, community explores Dogecoin Tip Jar for social media

AVAX price pulls back despite Amazon partnership and addition of USP stablecoin 

AVAX, the smart contract network, witnessed two bullish catalysts over the past week. The network announced AWS’s integration of AVAX blockchain solutions for solving business problems for enterprises and governments. 

Avalanche’s infrastructure and dApp ecosystem lured the giant AWS; the network announced the partnership in a recent tweet:

The smart contract network officially confirmed that it would support USP stablecoin, created by Platypus DeFi. AVAX confirmed that the stablecoin would be in Avalanche’s main pool, which plays a crucial role in USP’s stability. 

Adding the stablecoin to Avalanche’s ecosystem could drive the demand for the native token of the smart contract network, AVAX. The stablecoin’s rollout could facilitate the utility of the network. Experts believe this could fuel the demand for AVAX. 

Despite the two bullish catalysts, Avalanche’s price failed to recover from the recent pullback. AVAX price dropped 8% in the 24 hours between January 14 to 15, 2023, after yielding massive 36.5% gains over the past week. Avalanche’s hourly engagements hit 11.6 million, the highest point in the last 90 days, based on data from crypto data aggregator LunarCrush. 

AVAX social engagements

AVAX social engagements 

AVAX failed to sustain its upswing, the downside target for the native token of the smart contract network is $15.06, a key resistance level for the Avalanche.  

AVAX/USDT price chart

AVAX/USDT price chart

The chart above shows that AVAX pulled back despite its recent uptick.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Editor's Picks

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

Bitcoin Weekly Forecast: BTC shrugs off CLARITY Act setback and hawkish Fed

Bitcoin recovers, trading above $78,000 on Friday, but the 50-week SMA near $78,760 continues to cap its upside. A hawkish Fed outlook, escalating Middle East tensions, and the CLARITY Act's failure to advance in the US Senate could limit BTC upside.

Why Bitcoin's over 30% rebound doesn't mean the bear market cycle is done

BTC has staged a strong recovery after falling to a yearly low of $57,800 in July, gaining nearly 33% and recording two consecutive months of gains in July and August. Is this the start of a new bullish phase, or simply another recovery within a broader bear-market cycle?

Crypto Today: Bitcoin, Ethereum, XRP eye short-term breakout as bulls return

Bitcoin trades higher near $78,000 on Friday as bulls return after early-week macro uncertainty and regulatory headwinds. Ethereum aligns with the broader crypto market’s neutral-to-bullish outlook, holding support above $2,400 and gaining momentum for a short-term breakout at $2,500.

Bitcoin: BTC shrugs off CLARITY Act setback and hawkish Fed
Bitcoin (BTC) price action has remained resilient this week, trading above $78,000 at the time of writing on Friday, heading toward a key resistance zone. Institutional demand shows early signs of weakness, with spot Exchange Traded Funds (ETFs) on track for a second straight week of outflows, with over $420 million recorded through Thursday amid escalating Middle East tensions.