Key Points
- The price of Avalanche’s AVAX token has surpassed $12, reflecting a 2% increase.
- This rally follows Grayscale’s submission of an updated form for its Avalanche ETF.
AVAX Surpasses $12 Amid Grayscale’s ETF Update
In a notable upswing within the cryptocurrency market, Avalanche’s AVAX token has seen an impressive performance, trading above $12 after a 2% increase over the last 24 hours. This growth is occurring alongside a bullish trend for major cryptocurrencies, including Bitcoin.
The uptick in AVAX’s price is believed to be linked to Grayscale’s recent update regarding its Avalanche Trust conversion to an ETF. The asset manager has yet to announce management fees or staking details, but the anticipated listing of this ETF on Nasdaq could attract substantial institutional interest in AVAX.
Additionally, AVAX has experienced an influx of capital as the open interest (OI) in futures surged by 1.66% in the past day, reaching $499.87 million. This suggests a rise in trading activity, with participants building both long and short positions. However, a negative funding rate of -0.0113% indicates that some traders are willing to hold short positions at a premium.
AVAX Aiming for Resistance Level at $13.50
Despite the recent gains, the hourly AVAX/USD chart remains bearish, presenting challenges for the token. The latest rally follows a revival in retail demand, as AVAX rebounds from a dip that tested support around $11.18.
Technical indicators show signs of improvement, suggesting a growing bullish bias. The Relative Strength Index (RSI) sits at 52, indicating that bulls have regained control, while the MACD lines have also entered bullish territory.
If this uptrend continues and the daily candle closes above the resistance level at $12.78, AVAX could potentially rally towards $13.50. However, the token may retest support at $11.18 if the bullish momentum fails to sustain.
