The Avalanche Bulls (AVAX) have snubbed sensational claims by a self-proclaimed whistleblower website that the project’s parent company, Ava Labs, paid lawyers to damage the reputation of its competitors.
Avalanche price recovers from serious allegations
AVAX price set an intraday high of $19.75 on August 30, two days after hitting a local low of $17.50, a 15% gain. The token’s modest rally followed selling off suffered by a sensational CryptoLeaks report.
️ #Avalanche is the hottest topic in #crypto following an allegation that his #blockchain tried to manipulate the regulatory systems. After hitting a 7-week low about 9 hours ago, $AVAX has been up +7.5% since then. We are watching how the news of this pans out. https://t.co/Ry1mGvdMap https://t.co/OHmNMkpAzS pic.twitter.com/kk3zue4d3G
— Santiment (@santimentfeed) August 29, 2022
AVAX’s price fell 3.5% on August 26, the day CryptoLeaks released an unverified video showing Roche Freedman partner Kyle Roche saying he may sue Solana, a leading Avalanche rivals, on behalf of Ava Labs.
Related: Ava Labs CEO Denies CryptoLeaks Claims as a ‘Nonsensical Conspiracy Theory’
The token fell another 7.5% the next day after the whistleblower’s website published the full reportincluding another unverified video featuring Roche.
Additionally, Avalanche’s intraday losses lined up with similar negative moves across other major crypto assets.
AVAX can increase by 55%
Avalanche’s fundamentals are strongly tied to the overall cryptocurrency market, which makes it susceptible to further downtrends.
Independent analyst PostyXBT noted that AVAX’s price could then drop into the $13-$15 range and “keep BTC in mind” while placing a short position in the area.
Short training implementation manual.
Only concerns the deviation caused by $BTC run higher towards $20.8k.
Manage position size accordingly and keep btc in mind when setting invalidation levels pic.twitter.com/8wRgZxkOcv
— Posty (@PostyXBT) August 30, 2022
Analyst BrechTP also expects the price to crash towards $14 based on a “head and shoulders” setup, as shown below.
Related: A Sharp Drop in TVL and DApp Usage Preceded Avalanche’s (AVAX) 16% Correction
Conversely, analyst TraderSZ sees AVAX price will continue its recovery trend in the coming days. Its setup, as shown below, predicts that the Avalanche token will reach around $30 in September.
The bullish target aligns with AVAX’s current “symmetrical triangle” setup. Notably, the price rebounded after testing the triangle’s lower trendline as support and now views the structure’s upper trendline as its intermediate upside target.
The upper trendline is near TraderSZ’s $30 price target as shown below.
In other words, AVAX could rebound more than 55% from its current price levels.
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