Avalanche (AVAX) hit a new price point on November 18 and posted weekly gains after its developer, Ava Labs, entered into a partnership with “Big Four” accounting firm Deloitte.
AVAX price hit just over $ 110 after rising around 16% year-to-date (WTD), with its outstanding market cap reaching $ 23.76 billion, or nearly 0.93% of the total market capitalization of the crypto.
In contrast, AVAX’s main rival tokens, including Bitcoin (BTC) and Ether (ETH), fell more than 13% and 12.50% WTD, respectively.
Adoption of AVAX FOMO
AVAX was inspired by Deloitte’s decision to use the Avalanche blockchain to create a disaster relief platform.
The deal, according to Avalanche founder Emin Gün Sirer, “would help state and local governments easily demonstrate their eligibility for federal emergency funding.” The Avalanche blog post further noted that their blockchain solutions would help Deloitte “minimize the fraud, waste and abuse” that is prevalent in existing disaster management solutions.
In detail, AVAX works as an internal means of payment for Avalanche, that is to say a basic unit of account between the multiple sub-networks created on the Avalanche platform. Users also use AVAX to earn passive income by putting their coins on the network.
AVax’s potential use case in Deloitte’s upcoming disaster management systems has prompted traders to make some bold bullish calls. Newsquake, a Cointelegraph Markets Pro service, successfully identified bullish sentiment as a potential real-time market move event ahead of the AVAX price spike.
Meanwhile, Cointelegraph Markets Pro’s VORTECS ™ score turned green on November 12, before AVAX hit new highs. The VORTECS ™ Score is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trade volume, recent price movements and Twitter activity.
AVAX technical perspectives
Pseudonymous market analyst “Seq” tweeted a rocket emoji sign for indicate his Long-term bullish bias for the Avalanche token based on the adoption of Deloitte.
Probably nothing, only Deloitte, the world’s largest accounting firm that provides services to nearly 90% of Fortune 500 companies, chooses Avalanche for a federally approved disaster recovery platform to help state and local governments with emergency federal funding!$ AVAX https://t.co/GHzIWuSjfx
– Seq (@CryptoSeq) November 16, 2021
Another analyst Nico Noted that AVAX’s latest price hike accompanied an increase in transaction volumes, proving that the current hike had strong momentum behind it, adding:
“I’m looking for it at HODL in the ATH zone, aiming for a new test / turnaround as a continuation. If that happens then look for $ 210,000 +”
Nonetheless, AVax’s surge this week also made it an overbought asset based on its Relative Strength Index (RSI) signals. As a result, AVAX became overheated.
Related: Finance Redefined: Avalanche Launches $ 200 Million Fund, wXRP to Debut on Ethereum, Oct 29-Nov 5
The AVAX price fell more than 10% on Thursday after hitting its all-time high of $ 110. Additionally, selling pressure intensified as the Avalanche token tested its upward sloping resistance trendline (dashed line) which was a rising wedge in conjugation with the lower support of the rising trendline below ( the black trend line).
Ideally, the AVAX price can continue to rise until / before reaching the top (the point where its two trend lines converge). Then it would risk falling as much as the maximum height between the two trend lines. That pretty much gets AVAX going for $ 90.
A clear bearish divergence between a rising AVAX price and its falling RSI also hints at the weakening of the token’s bullish momentum.
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