Avalanche's Helicon Upgrade May Not Save AVAX from Falling Towards $7

Avalanche's upcoming Helicon upgrade is expected to bring significant changes to the C-Chain functionality and staking economics, but it may not be enough to prevent AVAX from falling towards $7.

The upgrade, scheduled for September 22, introduces six Avalanche Community Proposals, including Continuous Execution, a dynamic minimum gas price, automatic staking renewal, and a reduction in the minimum validation period to 48 hours.

Validator uptime requirements will increase from 80% to 90%, while the minimum reward curve will be lowered. However, despite these changes, AVAX continues to develop a bearish setup, highlighted by its loss of the 200-day SMA and a short-term bearish divergence on the RSI (14).

The current price of AVAX is $7.61, and it needs support at $7.60 to stabilize. If buyers fail to defend this level, the token could decline further towards the $7.20-$7.00 area.