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With Bitcoin’s (BTC) price rising by 10% from $57,800 to $64,000 on a weekly basis, most major altcoins also saw significant gains this week. Avalanche‘s (AVAX) price surged by over 30% in the last 7 days, influenced by the overall rise in the cryptocurrency market. This recovery allowed AVAX to surpass a critical resistance level that had persisted for five months, indicating a significant trend reversal. Whether this upward trend will continue remains to be seen.
Franklin Templeton’s Avalanche Move Boosts Price
On August 22, global investment firm Franklin Templeton expanded the reach of the Franklin OnChain U.S. Government Money Fund (FOBXX) by integrating it with the Avalanche network. Launched in 2021, FOBXX stands out as the first U.S.-registered investment fund to use a public blockchain for transaction processing and share ownership recording. Each share of the $420 million fund is represented by a BENJI token, and token holders can access the fund’s shares through the Benji Investments app.
The integration with the Avalanche network aims to increase the fund’s accessibility and capitalize on the growing number of institutional participants using Avalanche technology. This development, following Grayscale’s announcement of the Avalanche Trust Fund, provided additional upward momentum for AVAX‘s price, pushing it above the psychological level of $25.
Additionally, Franklin Templeton introduced new features for FOBXX. Benji wallet holders can now convert USDC stablecoin to invest in the fund’s shares and transfer these shares peer-to-peer on a public blockchain. Franklin Templeton’s Head of Digital Assets, Roger Bayston, stated, “Bringing the Benji platform to the Avalanche network further expands access to our first-of-its-kind tokenized money market fund.”
Surpassing $33 Could Target $40
From a technical analysis perspective, AVAX’s price continues to show upward potential. Since mid-August, the altcoin’s price has demonstrated a high-momentum recovery with nine consecutive green candles on the daily chart. This rise took AVAX from $19.78 to $27.7, recording a 40% growth and reaching a market cap of $11.4 billion.
Finally, AVAX’s price broke a key resistance line that had persisted since March 2024, signaling a significant reversal. This breakout suggests an additional 20% increase potential as AVAX challenges the $33 resistance. Surpassing this threshold would set the next target level at $41.82.
On the other hand, AVAX is still trading below the 100- and 200-day EMAs, indicating that the long-term trend remains bearish. If selling pressure increases, the altcoin’s price could re-enter a downtrend, pulling back to $17.4.
