Avalanche (AVAX) is the 2nd biggest loser in the crypto market this week, only below the Terra USD stablecoin, which has lost 54.17% in the last 7 days.
At the time of this writing, AVAX is trading at $23.01, accumulating a loss of 4.92% in the last 24 hours, and 24.96% in the last 7 days.
Avalanche (AVAX) still occupies a good part of the Luna Foundation Reserve (LFG Reserve)
In the midst of the death spiral of the Terra blockchain, the reserve of said network (LFG Reserve) had to get rid of almost all its coins. Of the few that remained, AVAX stands out, which by the way were never touched.
Luna Reserve bought Avalanche tokens in the middle of a partnership between the two platforms.
Today, the LFG Reserve consists of $133.37 million, of which $45.56 million is held in AVAX.
The Luna Ya Foundation announce the intention to distribute this capital among those affected by the UST crash. However, there are no details about what they will do with the AVAX tokens.
Avalanche recently clarified, through a thread on Twitter, that they are willing to work with the LFG, in case the possibility of selling the AVAX token reserves is contemplated.
The little more than 3 million AVAX tokens in the hands of Terra FormLabs and Luna Foundation, are equivalent to less than 1% of the total in circulation. However, the strong ties of this network with that of Terra, continues to generate fear among investors.
Technical analysis of Avalanche (AVAX)
On the daily chart AVAX vs USDT we can observe a strong short-term downtrend, resumed yesterday.
Despite the selling in recent hours, we are seeing a divergence of bullish strength between the price chart and the RSI. It is possible that a small uptick is about to occur. For it to be relevant, the resistance at $31.71 must be overcome.
At the moment, we will most likely see a small respite to fall again. The next important support is at $14.53.
Monthly chart
From this time frame we see a great correction of the long-term uptrend in process.
Currently, we do not see any signs that tell us that this fall has already bottomed out. In this graph, the next place of interest is the area around $12, where there was a strong purchase volume in the past.
The recent behavior is not positive for short-termists, but it could be generating good opportunities for those who trust the project in the long term.
All our publications are of an informative nature, so in no case should they be regarded as investment advice.
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