{"id":449778,"date":"2022-05-19T22:30:00","date_gmt":"2022-05-19T19:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/heres-why-terras-snowball-effect-could-send-avalanche-avax-price-to-15\/"},"modified":"2022-05-19T22:30:00","modified_gmt":"2022-05-19T19:30:00","slug":"heres-why-terras-snowball-effect-could-send-avalanche-avax-price-to-15","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/heres-why-terras-snowball-effect-could-send-avalanche-avax-price-to-15\/","title":{"rendered":"# Here\u2019s why Terra\u2019s snowball effect could send Avalanche (AVAX) price to $15"},"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-6a3798aba1fc9\" 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-6a3798aba1fc9\" 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\/heres-why-terras-snowball-effect-could-send-avalanche-avax-price-to-15\/#%E2%80%9D_Heres_why_Terras_snowball_effect_could_send_Avalanche_AVAX_price_to_15_%E2%80%9C\" >&#8221; Here\u2019s why Terra\u2019s snowball effect could send Avalanche (AVAX) price to $15 &#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\/heres-why-terras-snowball-effect-could-send-avalanche-avax-price-to-15\/#Avalanche_price_dips_amid_Terras_tax_evasion_FUD\" >Avalanche price dips amid Terra&#8217;s tax evasion FUD<\/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\/heres-why-terras-snowball-effect-could-send-avalanche-avax-price-to-15\/#Technical_analysis_projects_further_downside_for_AVAX\" >Technical analysis projects further downside for AVAX<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Heres_why_Terras_snowball_effect_could_send_Avalanche_AVAX_price_to_15_%E2%80%9C\"><\/span>&#8221; Here\u2019s why Terra\u2019s snowball effect could send Avalanche (AVAX) price to $15 &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Avalanche (AVAX) has emerged as one of the worst-performing cryptocurrencies among the top-ranking tokens in the last 24 hours, partially due to fears connected to Terra (LUNA) and it&#8217;s a near-dead UST algorithmic stablecoin project.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Avalanche_price_dips_amid_Terras_tax_evasion_FUD\"><\/span>Avalanche price dips amid Terra&#8217;s tax evasion FUD<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>AVAX&#8217;s price plunged by nearly 14% between May 18, where it traded near $35 to May 19 when the price dipped to $28.50. The dip <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/n-news-naver-com.translate.goog\/mnews\/article\/015\/0004700627?sid=101&amp;_x_tr_sl=auto&amp;_x_tr_tl=en&amp;_x_tr_hl=es\">coincided<\/a> with a South Korean <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> agency report\u00a0that claims Terraforms Labs, the developer of the Terra blockchain, owes 100 billion won (<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>roximately $78.5 million) to the regional tax agency.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Terra?src=hash&amp;ref_src=twsrc%5Etfw\">#Terra<\/a> owes $78.5M in taxes to South Korea&#8217;s government<\/p>\n<p>\u2014 Market Rebellion (@MarketRebels) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MarketRebels\/status\/1526978375641927680?ref_src=twsrc%5Etfw\">May 18, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The news came three days after Luna Foundation Guard (LFG), a nonprofit subsidiary of TerraForms, revealed that it had around 1.97 million AVAX tokens (worth $58.39 million at May 19&#8217;s price) in the reserves that were supposed to back its benchmark UST stablecoin. <\/p>\n<p>In the same pool, LFG also holds Bitcoin (BTC), Binance Coin (BNB) and LUNA. The firm had earlier sold a good portion of its holdings to shore up UST&#8217;s value following its &#8220;depeg&#8221;\u00a0from the U.S. dollar.<\/p>\n<p>Interestingly, LFG has not sold any AVAX, nonetheless, the panic around the Terra fiasco prompted the Avalanche token to plunge by nearly 50% month-to-date, including a 30% intraday decline on May 11.<\/p>\n<p><strong><em>Related:\u00a0Tether to move over 1B USDT from Tron to Ethereum and Avalanche<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Technical_analysis_projects_further_downside_for_AVAX\"><\/span>Technical analysis projects further downside for AVAX<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/3731798d-af16-4deb-a860-ee1021b28791.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>AVAX\/USD 4-hour price chart featuring &#8216;bear pennant&#8217; setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>From a technical perspective, AVAX&#8217;s price could fall by another 40% in May as it breaks out of its prevailing bearish continuation setup.<\/p>\n<p>Dubbed &#8220;bear pennant,&#8221; the pattern appears when the price consolidates inside a range\u2014defined by a falling upper trendline and a rising lower trendline\u2014after a strong move downward. It resolves after the price breaks below the lower trendline and, as a rule of technical analysis, falls by as much as the flagpole of the previous downtrend.<\/p>\n<p>The bear pennant setup puts AVAX en route to around $17 in May, down about 40% from May 19&#8217;s price.<\/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><\/p>\n<\/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 News 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\/here-s-why-terra-s-snowball-effect-could-send-avalanche-avax-price-to-15\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Here\u2019s why Terra\u2019s snowball effect could send Avalanche (AVAX) price to $15 &#8220; Avalanche (AVAX) has emerged as one of the worst-performing cryptocurrencies among the top-ranking tokens in the last 24 hours, partially due to fears connected to Terra (LUNA) and it&#8217;s a near-dead UST algorithmic stablecoin project. Avalanche price dips amid Terra&#8217;s tax&#8230;<\/p>\n","protected":false},"author":1,"featured_media":449779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvOWE5ODk3OTMtNGQ2MC00M2JkLThhMmMtMzhiZjc3NGNkNzVlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,79806,120396,75166,74937,74982,74868,74939,75679,75150,75493,78261,122378,73785,71407],"class_list":["post-449778","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-analysis","tag-avalanche","tag-binance-coin","tag-bitcoin-price","tag-btc-markets","tag-defi","tag-market-analysis","tag-market-capitalization","tag-market-update","tag-stablecoin","tag-tech-analysis","tag-terra","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/449778","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=449778"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/449778\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/449779"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=449778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=449778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=449778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}