{"id":445648,"date":"2022-05-11T15:22:15","date_gmt":"2022-05-11T12:22:15","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/avalanche-drops-30-on-fears-terras-lfg-will-dump-avax-next\/"},"modified":"2022-05-11T15:22:15","modified_gmt":"2022-05-11T12:22:15","slug":"avalanche-drops-30-on-fears-terras-lfg-will-dump-avax-next","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/avalanche-drops-30-on-fears-terras-lfg-will-dump-avax-next\/","title":{"rendered":"# Avalanche drops 30% on fears Terra&#8217;s LFG will dump AVAX next"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a358aff8c372\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a358aff8c372\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/avalanche-drops-30-on-fears-terras-lfg-will-dump-avax-next\/#%E2%80%9D_Avalanche_drops_30_on_fears_Terras_LFG_will_dump_AVAX_next_%E2%80%9C\" >&#8221; Avalanche drops 30% on fears Terra&#8217;s LFG will dump AVAX next &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/avalanche-drops-30-on-fears-terras-lfg-will-dump-avax-next\/#Major_AVAX_dump_ahead\" >Major AVAX dump ahead?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/avalanche-drops-30-on-fears-terras-lfg-will-dump-avax-next\/#Bearish_AVAX_price_technicals\" >Bearish AVAX price technicals<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Avalanche_drops_30_on_fears_Terras_LFG_will_dump_AVAX_next_%E2%80%9C\"><\/span>&#8221; Avalanche drops 30% on fears Terra&#8217;s LFG will dump AVAX next &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Avalanche (AVAX) is paying the price for being one of the collateral assets that maintain Terra&#8217;s native stablecoin TerraUSD&#8217;s (UST) peg with the U.S. dollar.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Major_AVAX_dump_ahead\"><\/span>Major AVAX dump ahead?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>AVAX&#8217;s price dropped about 30% to reach \u00a0$32.50 on May 11, its lowest level since September 2021. Its massive intraday decline coincided with UST dropping to as low as $0.23, which effectively dented its stablecoin status among traders and investors alike.<\/p>\n<p>The de-peg incident h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened despite Luna Foundation Guard, a Singapore-based nonprofit backed by TerraLabs,\u00a0emptying its crypto reserves\u00a0to prop up the UST peg. The firm currently holds 1.97 million AVAX worth nearly $74.75 million, according to data shared by analyst CrypOrca.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/db06461e-1095-4a36-aa26-0393926baa98.jpeg\"><figcaption style=\"text-align: center;\"><em>Luna Foundation Guard reserves. Source: CryptOrca<\/em><\/figcaption><\/figure>\n<p>A similar sentiment can be witnessed in the LUNA market, another crypto LFG holds as collateral to back UST. LUNA&#8217;s value dropped by 85% on May 11, its worst daily performance.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bearish_AVAX_price_technicals\"><\/span>Bearish AVAX price technicals<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Avalanche bulls attempted to save AVAX from falling below a key support line near $36, coinciding with the 0.238 Fib line of the Fibonacci retracement graph stretched from the $0.29-swing low to the $34.52-swing high. <\/p>\n<p>Their efforts helped the token recoup almost 22% of its May 11 losses, with its price rebounding from $32.50 to over $39.50.<\/p>\n<p>But a full-fledged bullish reversal appears unlikely as AVAX&#8217;s upside retracement faces one strong resistance after another. <\/p>\n<p>Initially, the token now eyes a run-up toward a support-turned-resistance area, marked as the accumulation zone in the chart below.\u00a0The upside target coincides with the 0.618 Fib line around $67.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/5e0b4cd5-ad80-47dd-8f3d-a93dc0f28242.png\"><figcaption style=\"text-align: center;\"><em>AVAX\/USD daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>A decisive close above the zone could have AVAX test its 50-day exponential moving average (50-day EMA; the red wave) near $69 and its 200-day EMA (the blue wave) around $74 as next resistances.<\/p>\n<p><em><strong>Related:\u00a0Terra founder Do Kwon shares plan to save the UST stablecoin peg<\/strong><\/em><\/p>\n<p>But AVAX also faces headwinds from a higher interest rate environment that has dampened buying sentiment across the crypto market. <\/p>\n<p>This could prompt the AVAX\/USD pair to retest $36 as support for a breakdown move, which risks leading the price toward $20, an important price floor from February to April 2021.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/avalanche-drops-30-on-fears-terra-s-lfg-will-dump-avax-next\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Avalanche drops 30% on fears Terra&#8217;s LFG will dump AVAX next &#8220; Avalanche (AVAX) is paying the price for being one of the collateral assets that maintain Terra&#8217;s native stablecoin TerraUSD&#8217;s (UST) peg with the U.S. dollar. Major AVAX dump ahead? AVAX&#8217;s price dropped about 30% to reach \u00a0$32.50 on May 11, its lowest&#8230;<\/p>\n","protected":false},"author":1,"featured_media":445649,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvYWY1ZjNjMGQtYjAyZC00OGFjLWIzMDItMjg1MmNlODZkY2QwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,120396,76153,74939,75493,78261,122378,73785],"class_list":["post-445648","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-avalanche","tag-dollar","tag-market-analysis","tag-stablecoin","tag-tech-analysis","tag-terra","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/445648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=445648"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/445648\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/445649"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=445648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=445648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=445648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}