Barrage (AVAX) rose to a new toll high on Nov. 18 and posted weekly gains after its developer, Ava Labs, entered a partnership with "Large Four" auditor business firm Deloitte.

The AVAX price reached a piddling over $110 after rise circa 16% week-to-date (WTD), with its circulated marketplace cap hitting $23.76 billion, almost 0.93% of the total crypto market cap.

In dissimilarity, AVAX's top rival tokens, including Bitcoin (BTC) and Ether (ETH), fell by over 13% and 12.50% WTD, respectively.

Top fifteen crypto tokens and their performance in the by seven days. Source: TradingView

AVAX adoption FOMO

AVAX picked its bullish cues from Deloitte's decision to employ the Avalanche blockchain for building a disaster relief platform.

The deal, according to Avalanche'south founder Emin Gün Sirer, would "aid state and local governments hands demonstrate their eligibility for federal emergency funding." Avalanche'southward web log post further noted that their blockchain solutions would assist Deloitte in "minimizing fraud, waste, and abuse," which is prevalent in existing disaster management solutions.

In detail, AVAX works every bit an in-firm payment method for Barrage, i.due east., a bones unit of account betwixt the multiple subnetworks created on the Avalanche platform. Users as well employ AVAX to earn passive income past staking their coins on the network.

AVAX's potential use case in the upcoming Deloitte disaster direction systems prompted traders to make bold bullish calls. Newsquake, a Cointelegraph Markets Pro service, successfully identified the bullish sentiment every bit a potential marketplace-moving outcome in existent-fourth dimension ahead of the AVAX toll boom.

VORTECS™ Score (green) vs. AXS cost. Source: Cointelegraph Markets Pro

Meanwhile, the Cointelegraph Markets Pro's VORTECS™ Score flipped green on November. 12, prior to AVAX climbing to new highs. The VORTECS™ Score is an algorithmic comparing of historical and current market conditions derived from a combination of information points including market sentiment, trading volume, recent toll movements and Twitter activeness.

AVAX technical outlook

Pseudonymous marketplace analyst "Seq" tweeted a rocket emoji sign to indicate their long-term upside bias for the Avalanche token based on the Deloitte adoption.

Some other annotator, Nico, noted that AVAX's latest price climb accompanied a ascension in trading volumes, proving that the current climb had potent momentum behind it, adding:

"Looking for it to HODL around the ATH area, aiming for a retest/flip as continuation. If happens, then looking for $210k+"

Nevertheless, AVAX's climb this calendar week also made it an overbought nugget based on its relative strength index (RSI) signals. As a result, AVAX became overheated.

Related: Finance Redefined: Avalanche launches $200M fund, wXRP to debut on Ethereum, Oct. 29–November. 5

The AVAX price dropped by more than than 10% on Nov. 18 subsequently striking its record high of $110. Furthermore, the selling pressure level intensified as the Avalanche token tested its up sloping resistance trendline (dotted) that constituted a rising wedge in conjugation with the lower ascending trendline support beneath (the black trendline).

AVAX/USD 3-day cost chart. Source: TradingView

Ideally, the AVAX toll may proceed rising until/ahead of hitting the apex (the point at where its two trendlines converge). And so, information technology would risk dropping lower by as much every bit the maximum height between the 2 trendlines. That roughly puts AVAX en route to $90.

A clear bearish divergence between a rising AVAX price and its falling RSI also hints at the token's weakening upside momentum.

The views and opinions expressed hither are solely those of the author and practise not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves chance, you should bear your own inquiry when making a determination.