Avalanche Faces Key Resistance Amid Institutional Interest and Price Rally
After a strong month, Avalanche (AVAX) faces key resistance that may delay its rally. Here's a summary of the recent developments:
Institutional Momentum and Developments
- AVAX is retesting the $34 support level after rebounding from $29 to a high of $36.1, driven by institutional interest.
- AgriFORCE rebrands as AVAX One, aiming to raise $550 million for AVAX accumulation, backed by Hivemind Capital and Anthony Scaramucci.
- Avalanche Foundation seeks to raise $1 billion to create US-based crypto treasury vehicles.
- South Korean BDACS launched KRW1, a won-pegged stablecoin, on Avalanche.
- Ava Labs' partnership with Toyota Blockchain Lab aims to develop the Mobility Open Network (MON), targeting new use cases like robotaxi fleets.
Technical Analysis and Market Outlook
- AVAX has seen a 43% increase in the monthly timeframe, turning $30 into support, but struggles to maintain a breakout above $35.
- The price trades within a Macro Wedge pattern since early 2024, nearing the resistance zone around $38.40.
- A monthly close above $38.40 could trigger a bullish trend similar to mid-2021 and early 2024.
- If unsuccessful, AVAX might retest the $29-$30 support, risking a drop toward $23.6.
- A retest could extend base-building into Q4 for a more sustainable breakout later.
Currently, AVAX is trading at $33.75, reflecting a 1% daily decline.
