The price of Avalanche (AVAX) has experienced notable fluctuations, driven by rumors surrounding a potential AVAX ETF. These speculations surfaced following VanEck’s application for a Solana ETF, raising similar hopes for AVAX. Over the past 24 hours, AVAX has surged by 10%, reaching a price of $27.96. This increase comes after a significant drop caused by the hacking incident at BtcTurk exchange last week.
AVAX Technical Analysis
AVAX’s price movement is currently displaying a falling wedge pattern, generally seen as a bullish indicator that often leads to upward breakouts. Despite this positive formation, AVAX is trading above its 50-day Simple Moving Average (SMA) but remains below the 200-day SMA.
Additionally, the 14-day Relative Strength Index (RSI) for AVAX has recently recovered from the oversold region and is now at 43, approaching the midpoint and targeting the first resistance level at 60.
Possible Price Movements for AVAX
Should AVAX break above the falling wedge, it could potentially rally by 76%, pushing its price to $58. Conversely, if the bearish trend continues, support levels might be found at $23.51 or even $19.54. In the short term, AVAX’s recent breakout from an inverse head and shoulders pattern suggests a possible 7% increase, potentially bringing the price to around $30.07.
Investor sentiment appears to favor further gains for AVAX. Data from Coinalyze indicates a 6.14% rise in 24-hour total open interest, suggesting that investors are accumulating AVAX in anticipation of upward movements.
Impact of ETF Rumors
The recent price increase in AVAX is closely tied to ETF rumors. VanEck’s Solana ETF application has sparked speculation about other altcoins, including Avalanche, that might be considered for ETFs in the near future.
A crypto investor named Quinten posted a list on social media of altcoins, including Avalanche, that are potential candidates for ETF applications soon. Such expectations contribute to the bullish sentiment around AVAX.
Investors’ Takeaways
– Monitor ETF application news for potential price catalysts.
– Watch for AVAX breaking the falling wedge pattern for a bullish signal.
– Keep an eye on RSI levels for overbought or oversold conditions.
– Short-term traders might target $30.07 based on the inverse head and shoulders pattern.
In conclusion, the recent surge in AVAX’s price is heavily influenced by ETF speculation and favorable technical patterns. Investors are advised to stay alert to market developments and technical indicators to make informed decisions.