AVAX price continued its downtrend today, Oct. 22, as the recent crypto market recovery faded. It has formed a giant megaphone pattern that points to a rebound soon.
Avalanche (AVAX) token crashed below the key support at $20 for the first time this week. It has tumbled by 45% from its highest level in September.
AVAX price has crashed despite several major bullish catalysts. For example, it has become one of the fastest-growing layer-1 chains in the crypto industry. Its monthly active addresses have jumped to over 75 million in the past five months.
Avalanche network is also burning thousands of AVAX tokens a month, a move that is reducing those in circulation. It does that by burning all its fees, a figure that has continued growing recently.
Avalanche has also reached major partnerships with companies like Toyota, Anthony Scaramucci’s Skybridge, and FIFA. It is also one of the blockchains that is participating in Wyoming State’s stablecoin initiative.
The network could be about to grow as the developers prepare to launch the Granite upgrade. Developers will activate the testnet on Wednesday next week, with the mainnet set to follow at a later date.
This upgrade introduces numerous features, including enhancing interchain messaging verification, unlocking new biometric use cases, and boosting transaction speeds with dynamic minimum block times.
Cryptocurrency prices tends to rise ahead of and after a major upgrade. For example, Ethereum (ETH) jumped to a record high after the Pectra upgrade. BNB (BNB) price also jumped to a record high after the Pectra, Lorentz, and Maxwell.
The daily timeframe chart shows that the Avalanche price has been in a strong downtrend in the past few days. It moved from a high of $36 in September to the current $19.56.
AVAX price has moved below the 50-day Exponential Moving Average, a sign that bears are in control. On the positive side, the coin has formed a megaphone pattern and is now hovering near its lower side.
This pattern is made up of two ascending and diverging trendlines. It often leads to more upside over time. Therefore, a rebound will likely push the price higher in the coming weeks, potentially to the psychological point at $30. A drop below the lower side of the pattern will invalidate the bullish view.
