[AVAX ETF rumors are rife, could it break through $58? 】
Avalanche price is up 9.1% in the past 24 hours, reaching $27.96 at press time. The price spike stems from speculation about the AVAX ETF on the X platform. The price of AVAX dropped significantly last week after the BtcTurk exchange was hacked.
In March of this year, AVAX price reached a yearly high, but then began to slowly decline, forming a falling wedge. The falling wedge is a bullish market structure with a high chance of a breakout to the upside. Avalanche’s price just broke above the 50-day simple moving average (SMA), but is still below the 200-day SMA.
AVAX’s 14-day RSI rebounded after falling into oversold territory on Monday and broke above the RSI moving average (MA). The RSI is currently at 43, close to the midpoint, and targeting the 60 level, which is the first level of resistance. If AVAX price breaks out of the falling wedge, it could trigger a 76% rally, pushing the price to $58. Conversely, if the bears persist, Avalanche’s price could sink further and find support near $23.51 and $19.54.
On the lower time frames, AVAX price just broke out of an inverted head and shoulders pattern. The profit target for this market structure predicts that AVAX price will increase by another 7% in the short term, which could push the price of Avalanche as high as $30.07. Data from Coinalyze shows that Avalanche’s 24-hour open interest (OI) increased by 6.14%, indicating that investors are accumulating AVAX and anticipating further gains.
Data from behavioral analytics platform Santiment shows that AVAX’s rally has been largely ignored by the masses, meaning the rally is more likely to continue. When the fear of missing out (FOMO) for an asset is high, the likelihood of a pullback is also higher. Rumors about an AVAX ETF stemmed from VanEck’s filing for the Solana ETF, which calls crypto assets commodities. Crypto investor Quinten shared a list of the biggest altcoin potentials on the X platform, anticipating possible ETF filings between now and next year. Avalanche is listed as one of the altcoins most likely to receive applications.
Avalanche bulls are bracing for a potential price breakout, a sentiment fueled by ETF speculation in the crypto market. This bullish sentiment could push AVAX's price higher, attracting more investors.
