We all know that the world of cryptocurrency never sleeps. The pandemic of this spring and summer showed us just how severe those market contradictions can be. While Avalanche (AVAX) is displaying bullish signals and garnering investor attention, Across Protocol's token (ACX) is facing serious allegations of DAO manipulation, creating a stark divergence in fortunes. This article explains what that means. It sheds light on what’s causing these market shifts and what it means for investors moving forward.

ACX Under Fire: DAO Manipulation Allegations

Across Protocol (ACX) is under heavy fire for allegedly coercing its decentralized autonomous organization (DAO). This controversy has sent shockwaves not only through its community, but across the entire crypto space. Ogle, pseudonymous founder of Layer 1 Glue, has leveled some heavy accusations against Across Protocol’s leadership. He names as defendants CEO Hart Lambur and project lead Kevin Chan, alleging that they plotted two nontransparent governance proposals to funnel community funds into their for-profit subsidiary, Risk Labs. These are no small claims that target the foundation of decentralized governance.

Central to the allegations are two good governance measures that Ogle says were hidden under the cover of regular community elections. Here Tyrian claims that insiders were in control of the wallets funding these proposals. This last-minute manipulation guaranteed the required quorum and resulted in their final passage. This is deeply troubling in terms of the integrity of the governance structure of the protocol. It raises the question of just how much power the community really has to effect change. The alleged misuse of community funds centers on approximately $23 million in questionable token transfers:

  • 100 million ACX transferred to Risk Labs with the understanding that it would be used for future development funding and with assurances that the tokens would not be sold for two years.
  • An additional 50 million ACX granted as “retroactive funding” through a second vote.

In lieu of meeting fiduciary obligations, the allegations assert that these transfers richened those in power. This has raised allegations of egregious self-dealing and a gross violation of public trust.

Hart Lambur's Response

In light of these troubling charges, Hart Lambur has strongly contested all allegations of illegal conduct. He asserts that Ogle's allegations are "completely untrue" and that the ACX tokens are being used as intended: to build and expand the Across Protocol. Lambur’s main concern seems to be Ogle’s deep ties to Across Protocol’s competitors, LayerZero and Stargate. This should give pause by pointing to a conflict of interest, or at least a hidden agenda behind these allegations.

Lambur takes a hard stand against the accusation that he is pulling $23 million in tax dollars out of the DAO for personal use. He emphasizes that the company behind Across Protocol, Risk Labs, is legally organized as a non-profit enterprise and all companies’ expenditures are heavily limited by law. He claims that the DAO had given Risk Labs ACX tokens to build out the protocol. He’s quick to underscore that the team spends the tokens judiciously, only for the purpose of attracting new talent. The two opposing narratives help illustrate the chaotic and complicated scene. Collectively, they could have meaningful effects on the future of Across Protocol and the ACX token.

ACX: Buy the Dip or Stay Away?

Investors are now asking whether to “buy the dip” on ACX, considering the allegations and the bad PR that has followed furiously. Now, many are asking if it’s better to “avoid” completely. The short answer is complicated and really determines a lot on your specific risk tolerances and investment strategy. On the other hand, if these allegations are found to be untrue, the recent price decline will be seen in retrospect as a tremendous buying opportunity. If proven true, the allegations could lead to a significant drop in ACX value going forward. As with all development, investors must understand the risks and measure them against the possible reward.

AVAX on the Rise: Technical Indicators Point to Bullish Momentum

While ACX is currently facing turmoil, Avalanche (AVAX) is soaring. Now a wave of positive sentiment is sweeping over it, propelled by a mix of 10 bullish technical indicators. These bullish signals suggest that AVAX is potentially in the early stages of a big break to the upside. Traders and investors most certainly are.

Here’s arguably the most impressive sign, the monthly stochastic golden cross. This unusual occurrence frequently heralds that an important trend is about to reverse. While AVAX is still technically in a bearish crossover, this crossover is an indication that AVAX is preparing to move from a bearish period to a bullish period. Reinforcing this bullish view is AVAX’s recent breakout over a crucial resistance cluster between $18 and $19. This cluster, made up of both diagonal (black line) and horizontal (red line) resistance levels, had served as a ceiling for price before. AVAX has recently managed to break above this resistance, flipping it into support, which is a bullish development.

Bullish Signals and Potential Patterns

Beyond the stochastic golden cross and the break above resistance, AVAX is flashing other bullish signals. The new weekly candle is a pretty clear rejection of lower prices. Consequently, AVAX has retraced above its 9-month EMA (Exponential Moving Average). This shows intense buying demand and commitment from buyers to drive the price upwards. On top of that, monthly momentum is currently flashing a bullish crossover, offering another layer of confirmation to the increasing upward momentum.

Completing the bullish picture is the possible development of an inverse head-and-shoulders formation, a widely recognized bullish chart pattern. This formation has been developing under the radar over the last few months, with the $21.50 level serving as the head and shoulders neckline. If AVAX is able to convincingly reclaim this neckline, upward movement may be considerable.

Actionable Trading Insights for AVAX

For those looking to capitalize on AVAX's bullish momentum, here are a few actionable trading strategies to consider:

  • Arbitrage: Take advantage of price discrepancies between exchanges by buying AVAX at a lower price on one exchange and selling it at a higher price on another. This strategy requires careful monitoring of prices across different platforms.
  • Hedging: Use Avalanche futures contracts to protect investments from market volatility. This can help mitigate potential losses if the market turns against you.
  • Leverage: Control larger positions with less capital using leverage. However, be cautious, as leverage can amplify both profits and losses.
  • Breakout: Consider a significant rally if AVAX can break past its multi-year trendline resistance. This could be a sign of a sustained upward trend.
  • Support and Resistance: Monitor support zones (e.g., $9-$10) and resistance areas (e.g., $48-$50) to make informed trading decisions.

By using these strategies and staying in tune with market conditions, investors can maximize their profits from AVAX’s current bullish trend.

The divergent paths of ACX versus AVAX serve as example #3059871 of how rapidly shifting and sometimes illogical the crypto market can be. As ACX continues to deal with these shocking allegations, AVAX continues to experience massive bullish momentum. Investors should carefully analyze the situation, assess their risk tolerance, and make informed decisions based on their individual investment goals.