The price of Avalanche (AVAX) currently stands at $17.75, but analysts speculate it could soon break the $20 barrier. This forecast comes as significant U.S. asset managers respond to new Treasury Department guidelines regarding ETF portfolios and staking practices.
AVAX Price Eyeing a Break Above $20
Avalanche, known for its high-throughput blockchain and robust ecosystem, may see renewed investor interest if market conditions remain favorable. Presently, AVAX trades at $17.75, approaching a crucial resistance level at $20.
However, this level poses a psychological and technical hurdle, especially after bulls have struggled to break through multiple times in recent attempts. Despite this, AVAX has shown resilience, bouncing back from a dip to $16.
Price chart for Avalanche by CoinMarketCap
Sustaining the price near this level could signal a series of positive trading days, bolstered by a rise in volatility that supports buyers. Given the current bearish sentiment coupled with global concerns surrounding high-risk assets, some analysts believe AVAX might be undervalued. If that’s the case, it could represent a potential buying opportunity for investors.
A breakout above the $20 mark is critical as AVAX’s correlation with other proof-of-stake (PoS) networks like Ethereum and Solana further strengthens its market position. These assets are expected to benefit from new regulatory clarity.
U.S. Crypto ETFs Set for Staking Approval
The U.S. Treasury and IRS have introduced revenue ruling 2025-31, a historic decision that establishes a safe harbor for ETFs and crypto trusts engaging in staking activities. These guidelines enable regulated funds to stake digital assets such as ETH and SOL while maintaining a pass-through tax status. Analysts note that this move removes prior legal uncertainties.
Today @USTreasury and the @IRSnews issued new guidance giving crypto exchange-traded products (ETPs) a clear path to stake digital assets and share staking rewards with their retail investors.
This move increases investor benefits, boosts innovation, and keeps America the…
— Treasury Secretary Scott Bessent (@SecScottBessent) November 10, 2025
Significance of the Development
While key conditions include holding a single type of cryptocurrency with a qualified custodian and distributing staking rewards directly to investors, this development may unlock significant capital inflows into PoS networks. Avalanche, whose native token could capitalize on institutional participation, stands to gain.
Furthermore, the anticipated excitement surrounding ETFs could make staking a common investment strategy. The convergence of Avalanche’s price potential coupled with the U.S. Treasury’s stance on crypto staking might prove extremely bullish for AVAX.
Market dynamics have also contributed significantly; AVAX last peaked above $20 following a bullish breakout near $35 in September, with prior highs of $55 reached in December 2024.
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