Key Points
- Avalanche’s AVAX trades above $12 after a 2% increase in value.
- This rally comes after Grayscale submitted an updated filing for its Avalanche ETF.
AVAX Surpasses $12 Following Grayscale ETF Update
A surge in the cryptocurrency market over the last 24 hours has propelled Bitcoin and several major altcoins into the green. Among them, AVAX, the native token of Avalanche, has emerged as a standout performer, gaining over 2% during this period.
This bullish momentum has allowed AVAX to exceed the $12 mark, with potential for short-term further gains. This uptick follows Grayscale’s updated details concerning its listed sponsor, Grayscale Investments Sponsors LLC, in the S-1 filing for converting the Avalanche Trust into an ETF.
The crypto asset manager has yet to disclose management or staking fees, nor any exemptions. A listing of this ETF on Nasdaq could significantly enhance institutional support for AVAX.
Additionally, AVAX has seen an influx of new capital as open interest rose by 1.66% over the past day, reaching $499.87 million. This indicates that traders are establishing new positions, both long and short.
However, a negative funding rate of -0.0113% suggests that traders are willing to maintain short positions, even while paying a premium.
AVAX Aims for Resistance at $13.50
The AVAX/USD four-hour chart remains bearish despite the recent 2% increase in the token’s value over the last 24 hours. This rally occurs amid rising retail demand, following AVAX’s recovery from a dip that saw it retest support at $11.18.
Technical indicators are improving, suggesting a growing bullish bias. The Relative Strength Index (RSI) is at 52, above the neutral mark of 50, indicating that buyers have regained control of the market. Additionally, the MACD lines have crossed into positive territory, further affirming the bullish outlook.
Should the rally continue and the daily candle close above the resistance level at $12.78, AVAX could rebound toward the $13.50 mark. However, if buyers fail to capitalize on this upward momentum, AVAX may test support at $11.18 once more.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
