Avalanche crypto falls 8% after Helicon launch—can AVAX hold $10?

Avalanche’s AVAX fell more than 8%, giving back part of its recent rally one day after the network activated its Helicon upgrade.

The timing does not mean that the upgrade is responsible for the decline. Instead, what the chart suggests is that traders took profits after AVAX saw some positive trends and approached a major resistance area.

Helicon changes how Avalanche operates

Helicon Upgrade was launched in Avalanche mainnet on September 22. It brought six changes in network performance, staking, and transaction fees.

Avalanche’s validators can now automatically renew their stake. Before now, after each stake ended, they had to redo the staking process.

Minimum staking duration has also been reduced from two weeks to 48 hours for its users, giving them a choice of how much time they can commit their AVAX.

Instead of validators receiving rewards for being up 80% of their chosen staking period, they now have to be constantly up 90% or higher. The reasoning behind the stricter rule is that it will increase the uptime reliability of the network.

Another change allows Avalanche to approve blocks whilst processing earlier transactions. What this means is that the network can now perform more work without waiting until one process has finished before moving on to the next.

In a change intended to provide predictable rewards for investors, Helicon will be gradually adjusting the staking reward formula over a period of 90 days. AVAX developers estimate such a change will slightly decrease AVAX inflation but will still reward long-term staking.

AVAX price retreats before $11.65

AVAX started trading near the $11.31 price level and reached the $11.40 price level before falling to about $10.36. Its lowest level of the day at the $10.11 price level places the psychological $10 level under immediate pressure.

The climb took place while the price was below $8, coming steeply upwards, which pushed a momentum indicator into overbought levels due to the speed in price appreciation. The momentum has since cooled down, but buyers are still in control.

AVAX continues to float above its short-term and long-term trend leading levels. Trading at the $10 level, therefore, could leave space to have another shot at the $11.40 – $11.65 resistance levels.

Above this range, we could see the $13.50 level. Yet, should the $10 range fall, support will next be expected at the $9.50, $9.75 level. Following on again, and we could see the area of $8.70, $8.85 levels tested.

Final Summary

• Avalanche activated Helicon on September 22, changing rules and features.
• AVAX must defend the $10 level before it will be able to target another move towards the $11.65 price level.