On September 20, AVAX price broke through a crucial resistance level that had been holding it down for over two months. This breakout comes at a time of significant development on the Avalanche network, driven by the Avalanche Foundation’s recent announcement of a $40 million Retro9000 Grant Program. This initiative, coupled with a major mainnet upgrade, aims to bolster the network’s ecosystem, raising the question: Could this propel the AVAX price to $40? As crypto market confidence grows, fueled by technical indicators and increased developer activity, the potential for a substantial price increase is on the horizon.
Avalanche’s $40M Retro9000 Grant Program Boosts AVAX Price
The Avalanche Foundation has launched “Retro9000,” a $40 million grant program to support the Avalanche testnet and mainnet developers.
How does it work? How can you participate?
Retro9000 is a retroactive grant program funded by the @AvalancheFDN abd driven by community votes.
Build in public, earn community support, test your deployment and ship projects to get rewarded!https://t.co/DW5ufgQhhd
— Avalanche (@avax) September 26, 2024
Retro9000 is an incentivized testnet based on Avalanche9000, the largest network upgrade Avalanche has undergone since the mainnet launch. The grant program is supposed to support developers building L1 blockchains on the Avalanche network.
Data from DeFiLlama shows Avalanche TVL has risen with its price, which shows more capital is being locked into the ecosystem, reflecting growing confidence among investors and users. Avalanche’s TVL stands at $1.043 billion today, up from a yearly low of $672 million on July 22, a 55% increase in two months.
Additionally, it shows more users are participating in the network, which can drive up demand for the token and, consequently, its price. Higher TVL can also mean better liquidity, making large transactions easier without significantly impacting the price. This attracts large investors to the network.
The Avalanche price has increased by 7% in the last 24 hours and is trading at $29.42.
AVAX Technical Analysis: $40 In Sight With Minor Stops
From a technical perspective, AVAX price may rise even higher as it has broken through the 200-day exponential moving average (EMA). AVAX is trading above an important zone, marking a new support level due to buyer congestion at that price.
The significant buy pressure at this is likely to boost AVAX price higher. If this happens, the asset could rise 36% to $40, around where it was back in May.
AVAX Price Analysis Chart
Futures trading data from Coinglass reinforced the significance of this support zone. Its Liquidation Map showed that AVAX sat on relatively robust support compared to the resistance it faced in its recovery path.
For instance, the 200-day EMA at $28 lies within the $25.98 and $28.73 price ranges, where there are approximately $19.63 million worth of cumulative Longs across Binance, OKX, and Bybit. On the flipside, there were only $10 million in Shorts.
This imbalance suggests that positive sentiment dominates the market because traders anticipate that the AVAX price will increase.
However, if AVAX fails to sustain above the 200-day EMA and falls below the neckline of the double-bottom bullish reversal pattern, it could signal market weakness, which could turn it bearish. AVAX would find lower support at $20 or below.
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