Avalanche (AVAX) hit a new all-time high (ATH) on November 18, rising 20% weekly after its developer Ava Labs partnered with accounting firm Big Four Deloitte.
AVAX price hit an all-time high of over $ 110 with a circulating market cap of $ 23.76 billion, nearly 0.93% of total crypto market cap.
In contrast, top cryptocurrencies like Bitcoin (BTC) and Ether (ETH) saw declines of 13% and 12.5% WTD, respectively.
Top 15 cryptocurrencies and their performance over the past seven days | Source: TradingView
FOMO effect AVAX
AVAX received an optimistic signal from Deloitte’s decision to use the Avalanche blockchain to build a disaster relief platform.
According to Avalanche founder Emin Gün Sirer, the deal will “make it easier for state and local governments to prove that they are eligible for federal emergency aid”. Avalanche blog post Note added that their blockchain solutions will help Deloitte “reduce fraud, waste and abuse” which is common with existing disaster management solutions.
Specifically, AVAX functions as an internal payment method for Avalanche, ie as the basic unit of account between several subnets that were created on the Avalanche platform. Users also use AVAX to generate passive income by wagering their coins on the network.
AVAX’s potential use case in Deloitte’s upcoming disaster management system has spurred traders to bold bullish predictions. Newsquake has successfully identified bullish sentiment as a potential market event moving in real time before AVAX price explodes.
Technical outlook from AVAX
Market analyst “Seq” has tweets a rocket symbol suggesting a long-term upward trend in AVAX price based on Deloitte’s use.
“Probably nothing, just Deloitte, the world’s largest accounting firm, which provides services to nearly 90% of the Fortune 500 (the top 500 US companies), chooses Avalanche as its disaster recovery platform. Federally approved to help state and local governments deal with emergencies to support.” Financing!”.
Another analyst, Nico, Note that the recent AVAX rally was accompanied by an increase in trading volume, which shows that the current bull run has strong momentum.
However, AVAX’s escalation this week also makes it an overbought asset based on relative strength index (RSI) signals. This makes AVAX too hot.
AVAX price fell more than 10% on November 18 after hitting an ATH of $ 110. Additionally, selling pressure increased when testing the upward sloping resistance trendline (dashed line) which formed a rising wedge that was combined with lower rising trendline support below (black line).
Three-day framework AVAX price chart | Source: TradingView
Ideally, AVAX price could continue to rise until / before it hits a high (the point where its two trend lines converge). There is then a risk that it will fall the maximum height between the two trend lines. That will likely set AVAX back to $ 90.
The sharp bearish divergence between the bullish AVAX price and its falling RSI also shows that the bullish momentum is weakening.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Cointelegraph