Avalanche (AVAX) price recently saw significant movements fueled by potential AVAX ETF rumors. These speculations emerged after VanEck’s application for a Solana ETF, leading to similar expectations for AVAX. In the past 24 hours, AVAX rose by 10%, bringing its price to $27.96. This increase followed a sharp decline caused by the hacking of the BtcTurk exchange last week.
AVAX Technical Analysis
The cryptocurrency AVAX‘s price action is forming a falling wedge pattern, typically considered bullish as it precedes upward breakouts. Despite this bullish formation, the asset is trading above the 50-day SMA but remains below the 200-day Simple Moving Average (SMA).
Recently falling into the oversold region, AVAX’s 14-day Relative Strength Index (RSI) has recovered and is currently at 43. It is approaching the midpoint and looking towards the first resistance level at 60.
Possible Price Movements for AVAX
If AVAX can break above the falling wedge formation, it could potentially rally by 76%, pushing the price to $58. However, if the bearish trend prevails, the price may find support at $23.51 or even $19.54. In a shorter timeframe, AVAX recently broke out of an inverse head and shoulders pattern, indicating a possible 7% increase that could bring the price to around $30.07 in the near term.
From an investor sentiment perspective, there appears to be a tilt towards further gains for AVAX. Data from Coinalyze shows a 6.14% increase in 24-hour total open interest (OI). This data indicates that investors are accumulating AVAX in anticipation of upward movement.
Additionally, Santiment’s behavioral analysis suggests that the current rally is largely ignored by the broader market. This absence of typical FOMO-induced volatility often points to a more sustainable price increase.
Impact of ETF Rumors
The rise in AVAX’s price is closely linked to ETF rumors. VanEck‘s application for a Solana ETF has sparked speculation about which other altcoins might be considered for ETFs in the near future.
A crypto investor named Quinten shared a list on social media of altcoins, including Avalanche, that are likely candidates for ETF applications in the coming periods. The anticipation of such developments contributes to the bullish sentiment surrounding AVAX.
