Avalanche price set for surge as Franklin Templeton extends its L1 blockchain footprint to Avalanche

• Franklin Templeton, a global investment firm, expands its L1 blockchain focus to include Avalanche.
• Agora launches its fully-collateralized US digital dollar, AUSD, on the Avalanche network.
• Avalanche price trades inside a falling wedge pattern; breakout would signal a bullish move ahead.
• On-chain data paints a bullish picture, with AVAX's TVL rising and the long-to-short ratio above one.
• A daily candlestick close below $19.73 would invalidate the bullish thesis.

 

Avalanche (AVAX) trades inside a falling wedge pattern on Thursday, and a breakout would signal a bullish trend. As of Thursday, AVAX had gained 4%. The recent launch of investment firm Franklin Templeton’s and Agora's fully-collateralized US digital dollar, AUSD, on the Avalanche network suggests that the AVAX price will rally in the coming days.

 

Franklin Templeton and Agora launch their project on the Avalanche network

 

Franklin Templeton, a leading global investment firm with $1.6 trillion in assets under management, has expanded its blockchain footprint by introducing its pioneering on-chain money market fund, the Franklin Templeton OnChain U.S. Government Money Fund (FOBXX), to the Avalanche network. This marks the first US-registered mutual fund to utilize a public blockchain for transaction processing and share ownership, underscoring Avalanche's growing institutional infrastructure and its role in shaping the future of finance.

Additionally, Agora has launched its fully collateralized US digital dollar, AUSD, on the Avalanche network, embodying the principle of monetary neutrality with an open model that encourages various businesses — from exchanges to fintech — to engage with and benefit from the network's growth. Leveraging Avalanche's EVM compatibility, sub-second transaction finality, low fees, and customizable infrastructure, AUSD could draw increased users and liquidity to the Avalanche platform.

Avalanche price shows potential for a rally ahead

 

Avalanche price trades inside a falling wedge pattern, formed by joining multiple high and low levels with trendlines from mid-March. The breakout of this pattern generally signals a bullish move. When writing, it is trading higher by 4% at $24.49 on Thursday.

 

If AVAX breaks and closes above the falling wedge pattern, it could rally 33% to retest its 61.8% Fibonacci retracement level at $32.45, drawn from the high on May 22 to the low on August 5.

 

The Relative Strength Index (RSI) on the daily chart trades above its neutral level of 50, and the Awesome Oscillator (AO) is on its way to trading above its neutral level of zero. If bulls are indeed returning, then both momentum indicators must maintain their positions above their respective neutral levels. Such a development would add a tailwind to the ongoing rally.

AVAX/USDT daily chart

Crypto intelligence tracker Artemis data shows that Avalanche's TVL increased from $832.3 million on Monday to $891.1 million on Thursday, constantly rising since August 5.

 

This 7% increase in TVL indicates growing activity and interest within the Avalanche ecosystem. It suggests that more users deposit or utilize assets within AVAX-based protocols, adding credence to the bullish outlook.

AVAX TVL chart

According to Coinglass's data, AVAX's Binance long-to-short ratio is 1.66. This ratio reflects bullish sentiment in the market, as the number above one suggests that more trades anticipate the price of the asset rising, bolstering Avalanche's bullish outlook.

AVAX long-to-short ratio chart

Despite the bullish thesis signaled by both on-chain data and technical analysis, the outlook will shift to bearish if Avalanche's daily candlestick closes below the August 16 low of $19.73. This scenario could lead to a 12% crash to retest its low of $17.33 on August 5.

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