The AVAX recovery is consistent with similar bullish moves in high-ranking crypto assets.
Avalanche (AVAX) cops have denied sensational claims by a self-proclaimed news site that the project’s parent company, Ava Labs, paid lawyers to tarnish the reputation of its competitors.
Avalanche price bounces back from serious allegations
AVAX price reached an intraday high of $19.75 on August 30, two days after bottoming locally at $17.50, up 15%. The modest recovery of the token followed the sell-off caused by the sensational CryptoLeaks report.
The price of AVAX dropped 3.5% on August 26, the day CryptoLeaks released an unconfirmed video of Kyle Roche, an associate of Roche Friedman, saying he was selling Solana, one of Avalanche, on behalf of Ava Labs.
Related: Ava Labs CEO Denies CryptoLeaks Claims as ‘Conspiracy Theory Nonsense’
The token dropped another 7.5% the day after the whistleblower website released the full report, including another unconfirmed video featuring Roche.
AVAX/USD daily chart. Source: Trading View
In addition, Avalanche’s intraday losses coincided with similar negative moves in other leading crypto assets.
AVAX could increase by 55%
Avalanche’s fundamentals are closely tied to the overall crypto market, making it vulnerable to additional downtrends.
Independent PostyXBT analyst noted that AVAX price could drop to the $13-$15 range next time to “watch BTC” by taking a short position in this area.
The BrechTP analyst also expects the price to drop to $14 based on a head and shoulders setup as shown below.
Related: Sharp drop in TVL and DApp usage preceded 16% Avalanche (AVAX) correction
AVAX/USD four-hour price chart. Source: BrechTP
Conversely, TraderSZ analyst believes that the price of AVAX will continue its recovery trend in the coming days. Its setup as shown below shows the Avalanche token reaching around $30 in September.
AVAX/USDT two-hour price chart. Source: TraderSZ/TradingView
The upward target corresponds to the prevailing AVAX “Symmetrical Triangle” setup. It is noteworthy that the price has recovered after testing the lower trend line of the triangle as support and is now considering the upper trend line as a preliminary upside target.
The upper trendline is near TraderSZ’s $30 price target as shown below.
Weekly AVAX/USD chart. Source: Trading View
In other words, AVAX could go up more than 55% from the current price level.
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