Avalanche crypto price remains under pressure this month despite the network making major partnerships and its stablecoin growth supercharging. AVAX token was trading at $23.4, where it has remained recently, and 50% above the lowest point this year.
AVAX Price Struggles Despite Ecosystem News
Avalanche has made major announcements this year that will drive further ecosystem growth. One of the major news came a few months ago when FIFA selected it as the blockchain for its non-fungible tokens (NFT). FIFA was using Algorand before the announcement.
Avalanche made waves again when Anthony Scaramucci’s SkyBridge Capital selected it for its $300 million fund. This announcement will bring institutional assets on-chain, mirroring what other companies like BlackRock and Franklin Templeton have done.
Avalanche was also selected by Toyota, the biggest automaker, as it built its prototype for vehicle finance. In a note, Toyota cited Avalanche’s speed and low costs as the reason for this. Also, Avalanche is already in the business, powering over $6 billion in on-chain loans.
Meanwhile, the state of Wyoming selected Avalanche as it launched FRNT, the first state-issued stablecoin that is pegged to the US dollar. In addition to this, Avalanche was selected to run the first Japanese yen stablecoin (JPYC).
Data shows that Avalanche’s stablecoin business is growing, with the supply increasing by 8% over the last 30 days to $1.5 billion and the adjusted transaction volume surging by 472% to $154 billion.
The other potential catalyst for the Avalanche crypto is the approval of a spot AVAX ETF by the Securities and Exchange Commission later this year. Such an approval would lead to more inflows from American investors.
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Avalanche Crypto Price Technical Analysis
The daily chart shows that the AVAX price has remained in a tight range in the past few days. This consolidation, however, could be strategic as the coin has slowly formed the highly bullish inverse head-and-shoulders chart pattern.
The head is at $15.45, while the neckline is at $26.85, and the two shoulders are between $20 and $22.
The token sits above the 50-day and 100-day Exponential Moving Averages (EMA), a bullish sign. Therefore, the price will likely rebound and surge to $40. The price target is identified by measuring the distance between the head and the neckline, and then the same distance from the neckline.
