Avalanche strengthen its presence during Q4 2021 rally, and quickly entered the top 10 cryptocurrency ranking list. Despite a couple of huge setbacks, the price maintained elevated support levels. This compels the price to hover within a symmetric triangle. A breakout from the triangle may ignite a rally beyond $120 but the consolidation is yet to reach the apex. And hence the AVAX price is primed to accumulate for another week before deciding the next up.
In a recent update, Terra Foundation expands its accumulation beyond Bitcoin. Recently, the foundation announced acquiring $100 million worth of AVAX to back their stablecoin reserve UST. And hence Terra (LUNA) & Avalanche (AVAX) prices both appear to be extremely bullish as the foundation may be pretty sure of the upcoming AVAX price rally. Moreover, with the expanding adoption, UST supply may hit $50B by EOY.
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As the analyst said, with the continued adoption, UST may become the native of AVAX and eventually, the TVL of Avalanche may also surge high. As the collaboration may benefit both the partners. AVAX requires a stable coin that could back their liquidity and bridging token and here’s where UST comes into play.
On the other hand, UST is also required for the AVAX’s Gamefi platform and also the platform requires to incentivize the stable farming which may attract a lot of new users. And hence fostering the entire ecosystem may also deeply impact the AVAX price. As said the Avalanche price is currently trading within a complex environment and hence a breakout may head towards $120 while a breakdown may drag below $60.
Source: https://coinpedia.org/price-analysis/this-is-why-avalanche-avax-price-is-poised-to-hit-120-but-may-not-achieve-in-april-2022/