AVAX Price Could Drop To $8.75 Support Despite New Developments

• Daniele Sestagalli announced the initiation of WAGMI phase 2 on Monday.
• The price of ICE surged by more than 89% over the past 24 hours alone.
• AVAX’s price was at risk of dropping to the crucial support level at $8.75.

The DeFi products suite, WAGMI, shared in an X post on Monday that they have initiated the roll out of WAGMI phase 2. This new introduction of WAGMI, which is a commonly used acronym for “we are gonna make it,” appears to be a rebranding of Avalanche (AVAX) developer Daniele Sestagalli’s Popsicle Finance.

WAGMI phase 2 revolves around Popsicle’s ICE tokens. Starting from today, ICE token holders now have the option to exchange their tokens for WAGMI using a blockchain-powered tool. This announcement had an impressive impact on the price of ICE as it surged by more than 89% in just one day to trade at $1.31 at press time.

On the other hand, the price of AVAX has not yet responded positively to Sestagalli’s latest WAGMI announcement. According to CoinMarketCap, AVAX was trading hands at $9.12 after its price slipped by 1.16% in the past 24 hours of trading. This meant that the cryptocurrency was trading closer to its daily low price of $9.07 than its 24-hour high.

Meanwhile, AVAX experienced an increase of over 8% in its 24 hour trading volume, bringing it to approximately $123,260,550. The decrease in AVAX’s price further exacerbated its weekly performance, pushing it deeper into negative territory to -1.09%.

Sestagalli’s previous Avalanche products created a cult-like following in the previous bullrun, so it will be interesting to see how the community reacts to this new development. From a technical standpoint, AVAX’s price was at risk of dropping to the crucial support level at $8.75.

The altcoin’s price was trading within a medium-term negative price channel, which had resulted in it dropping below the key $9.95 price point on 31 August 2023. If this bearish trend continues, AVAX may retest the $8.75 support level in the coming couple of days.

Traders and investors will want to take note of the fact that the daily RSI line was attempting to cross above the daily RSI SMA line. If these technical indicators cross, it will signal that buyers have gained the upper hand on AVAX’s chart.

Subsequently, AVAX’s price may climb to potentially reclaim a position above the aforementioned $9.95 mark. Thereafter, continued buy support may also lead to AVAX attempting a challenge at the next threshold at $11.25.

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