Key Takeaways
Grayscale is exploring adding Terra and Avalanche to its range of investment products.
The LUNA and AVAX tokens could benefit from the news. Both assets are currently trading below crucial resistance.
A spike in buying pressure behind LUNA and AVAX could help them rise to new all-time highs.
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Institutional investors may soon be able to buy into Terra and Avalanche. Grayscale has announced that it has added LUNA and AVAX to its list of assets under consideration.
Grayscale Considers Adding Terra and Avalanche
Grayscale is weighing up adding the Layer 1 assets Terra and Avalanche to its range of investment products.
The world’s largest digital asset manager confirmed it was updating its assets under consideration Thursday. The firm added LUNA and AVAX to its list, which already includes a wide variety of Layer 1 and DeFi tokens across different sectors, including Polygon, Polkadot, Solana, and others.
The investment giant further clarified that not all assets under consideration would be offered as investment products due to factors such as internal controls, custody arrangements, and regulations. Although Grayscale’s process of creating an investment product for Terra and Avalanche is complex and multifaceted, LUNA and AVAX could benefit from the announcement.
Both assets appear to be forming ascending triangles on their 12-hour charts, with the bullish continuation patterns suggesting that both cryptocurrencies are bound for significant gains. However, they must overcome crucial resistance first.
LUNA, AVAX Look Primed to Surge
Terra’s LUNA must print a 12-hour candlestick close above $49.54 to enter a new uptrend. Slicing through this hurdle could see the token surge by nearly 50% to hit a new all-time high of $75.
The bullish outlook derives from measuring the height of the triangle’s y-axis and adding that distance upward from the breakout point.
Source: TradingView
Likewise, Avalanche must break through $79.80 to achieve its upside potential. The ascending triangle formation projects that AVAX could surge by more than 50% after breaking its overhead resistance. In this eventuality, the token could make a new record high of $118.
Source: TradingView
It is worth noting that the bullish outlook for Terra and Avalanche is only likely to be validated upon the breach of their respective overhead supply barriers. Failing to do so could lead to significant losses. A failure to overcome their supply barriers could see LUNA drop toward $40, while AVAX may dip to $62.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
This news was brought to you by Phemex, our preferred Derivatives Partner.
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