Key Points
- The Avalanche AVAX token is currently trading above $12, having gained 2% in value.
- This rally follows Grayscale’s submission of an updated registration for its Avalanche ETF.
AVAX Surpasses $12 as Grayscale Updates ETF Filing
The cryptocurrency market has shown bullish trends in the last 24 hours, with Bitcoin and other major coins making gains. Among the top 30 cryptocurrencies, AVAX, Avalanche’s native token, stands out with over a 2% increase in the past day.
This bullish trend has allowed AVAX to surpass the $12 mark and could continue to rise in the short term. The increase is linked to Grayscale’s recent update regarding the sponsor in their S-1 filing to convert the Avalanche Trust into an ETF.
The crypto asset manager has yet to disclose any management or staking fees, as well as any waivers. A listing of this ETF on the Nasdaq could enhance institutional support for AVAX.
Additionally, AVAX has seen a surge in new capital flows, with the Open Interest (OI) in futures increasing by 1.66% over the last 24 hours, reaching $499.87 million. This indicates that traders are building new positions, both long and short.
However, a negative funding rate of -0.0113% suggests that traders are willing to maintain short positions at a premium.
AVAX Aims for Resistance Level at $13.50
The AVAX/USD four-hour chart remains bearish, even with the token’s 2% value increase over the last 24 hours. This rally occurs amidst growing retail demand, after AVAX has rebounded from dropping back to the support level at $11.18.
Technical indicators have improved, signaling a growing bullish bias. The RSI at 52 is above the neutral 50 mark, suggesting that bulls have regained control of the market. The MACD lines have also crossed into bullish territory, indicating a bullish sentiment.
If the rally continues and the daily candle closes above the resistance at $12.78, AVAX could rebound toward the $13.50 level.
Nonetheless, AVAX may revisit the support level at $11.18 if bulls fail to capitalize on this rising momentum.
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