Avalanche, a decentralized, open-source proof-of-stake blockchain with smart contract functionality, has been making significant strides in recent months. The native cryptocurrency of the platform, AVAX, has been on a bullish trajectory, with experts predicting it could hit the $40 mark. This surge in price is largely attributed to the recent integration of Franklin Templeton’s $420M FOBXX fund with the Avalanche network.
AVAX Corrects a Major Reversal Trend
Avalanche has managed to break a 5-month correction pattern amid a major resistance breakout. This recovery helped AVAX overcome a key resistance level that had persisted for five months, signaling a major trend reversal. The Avalanche price surged 3.5% during a trading session, buoyed by a broader market uptick.
Since mid-August, Avalanche’s price prediction has indicated a strong recovery, with nine consecutive green candles on the daily chart, signaling a 40% surge from $19.78 to $27.7 and a market cap increase of $11.4 billion. Last Thursday, AVAX broke out of the falling wedge pattern’s resistance trendline, marking an early sign of trend recovery. This pattern, characterized by two converging trend lines, has been driving Avalanche’s correction since March 2024.
AVAX/USD price chart. Source: TradingView
As buyers reclaimed the 20- and 50-day Exponential Moving Averages (EMAs), the near-term trend will likely shift positively. If the bullish momentum continues, AVAX may rally 20% to challenge the $33 resistance and potentially reach $41.8. However, trading below the 100- and 200-day EMAs suggests a broader bearish trend. If sellers push AVAX back into the wedge pattern, the recent breakout could be invalidated, leading to a potential correction to $17.4 support.
Based on our technical analysis, Avalanche Coin’s200-day SMA is projected to ascend over the next month, with a simultaneous short-term 50-day SMA expected to eye $24.93 by the same date.
The Relative Strength Index (RSI) currently stands at 65.20, indicating a Neutral market sentiment for Avalanche.
Franklin Templeton’s Tokenized Fund
Franklin Templeton, a global investment firm, expanded the reach of its Franklin OnChain U.S. Government Money Fund (FOBXX) with integration on the Avalanche network. Launched in 2021, FOBXX is the first U.S.-registered mutual fund to utilize a public blockchain for transaction processing and share ownership recording. This innovative approach to mutual funds represents a significant step forward in the fusion of traditional finance and blockchain technology.
One share of the $420 million Fund is represented by one BENJI token. Token holders can gain exposure to the Fund through the Benji Investments app. The integration with the Avalanche network aims to enhance accessibility while tapping into the increasing number of institutional participants utilizing Avalanche’s technology.
Impact on Avalanche’s Price
The integration of Franklin Templeton’s tokenized fund with the Avalanche network has significantly impacted the price of AVAX. Alongside this announcement and Grayscale’s Avalanche Trust Fund, the Avalanche price gained additional bullish momentum, pushing it past the $25 psychological level. This shows the power of strategic partnerships and integrations in influencing the price of cryptocurrencies.
Source: Coinfomania
Meanwhile, as of writing, AVAX, per Coinfomania expert price prediction, is currently trading at $23.48 with a forecasted increase of 0.60% to $22.47 by 27 August. Technical indicators suggest a ‘Sell’ market sentiment. Over the last 30 days, AVAX has seen 13/30 green days, reflecting a 43% positive trading trend.
Source: Coinfomania With a price volatility of -3.35%, AVAX exhibits moderate fluctuations. In the past 24 hours, avax has experienced a positive trend of 2.29% since yesterday. The live market cap stands at $9.50 billion, with a circulating supply of 404771353.19288 coins out of a maximum supply of 720000000 AVAX.
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