The cryptocurrency market presented a tale of two distinct narratives on Friday, highlighting the critical importance of both protocol-specific fundamentals and broader technical trends. Across Protocol's native token, ACX, experienced a sharp 10% decline following serious allegations of governance manipulation and insider trading. Simultaneously, Avalanche's AVAX token demonstrated significant strength, breaking out of a key consolidation phase and signaling potential for further upward movement. This divergence underscores a market where traders are meticulously differentiating between projects facing internal turmoil and those exhibiting robust technical health.

ACX Token Plummets 10% on Governance Manipulation Allegations

The drama surrounding Across Protocol (ACX) unfolded rapidly as prominent social media users accused core contributors of front-running a major exchange listing and maintaining undue control over its supposedly decentralized autonomous organization (DAO). These accusations, whether substantiated or not, sent immediate shockwaves through the ACX market. The token's price fell by 10%, a move accompanied by a significant spike in trading volume. This combination of falling price and rising volume is a classic indicator of panic selling and heightened trader activity, suggesting market participants were rushing to de-risk their positions in the face of uncertainty. The allegations created a high-volatility environment, presenting a risky proposition for traders where the potential for further downside remains until the situation is clarified.

Trader Reaction and Developer Defense

In response to the market turmoil, Across Protocol co-founder Hart Lambur issued a swift and firm denial, calling the accusations "categorically untrue." He explained that the DAO had granted ACX tokens to the development team, Risk Labs, as a standard practice to fund protocol development and growth. Lambur highlighted that these grants were instrumental in shipping Across v3 and are now funding the development of the highly anticipated Across v4, as well as the hiring of new team members on four-year vesting schedules. According to Lambur, the tokens were being used "exactly as intended." For traders, this creates a classic standoff. Those who believe the denial may see the 10% dip as a buying opportunity, while those wary of the allegations will likely stay clear or even consider short positions until more evidence emerges.

Avalanche (AVAX) Breaks Out, Signaling Bullish Momentum

In stark contrast to ACX's troubles, Avalanche (AVAX) painted a bullish picture for traders. The token successfully broke out of a consolidation phase, a technical pattern that often precedes a significant price move. AVAX demonstrated resilient price action, establishing a clear uptrend. Its price had been consolidating in a tight range between approximately $17.13 and $17.35 before a breakout occurred on significant volume, a key confirmation for technical traders that the move has conviction. This breakout helped establish a strong new support level at $17.07, which was confirmed by above-average trading volume on the price reversal, indicating strong buying interest at this level.

Key Technical Levels and Trading Signals for AVAX

A closer look at the AVAX chart reveals several bullish signals. The asset established a pattern of higher lows throughout the period and repeatedly tested resistance at $17.63. This type of price action suggests that an accumulation phase has likely concluded, and the asset is poised for continued upward momentum. In more recent price action, AVAX formed a double bottom pattern around $17.36 before staging a rally, with volume increasing on the ascent. The final period showed the price bouncing decisively from $17.37 to $17.46, signaling renewed buying pressure. For traders, the breakout above the $17.35 consolidation range presents a potential long entry, with a logical stop-loss below the $17.07 support. The primary target would be a break above the $17.63 resistance. This strength is notable as it contrasts with the broader market, which saw many assets trade sideways or slightly down. Meanwhile, other Layer-1s like Solana also showed strength, with the SOL/USDT pair climbing 1.73% to $151.77 and the SOL/BTC pair gaining over 2%, indicating a potential rotation of capital into high-beta, large-cap altcoins.