AVAX Price Surge Fueled by ETF Rumors and Bullish Technical Patterns: Key Levels to Watch

• Avalanche (AVAX) has shown considerable price volatility, driven by speculation over a potential AVAX ETF.
• These rumors gained traction following VanEck’s application for a Solana ETF, sparking similar hopes for AVAX.
• In the past 24 hours, AVAX shot up by 10%, settling at $27.96, rebounding from a recent drop caused by the BtcTurk exchange hack.

Explore the impact of ETF rumors and technical analysis on AVAX’s recent price movements in our detailed article.

Technical Analysis of AVAX

The AVAX price trajectory is currently delineating a falling wedge pattern, typically a bullish formation that may precede upward breakouts. Despite the optimistic pattern, AVAX is trading above its 50-day Simple Moving Average (SMA) but has yet to surpass the 200-day SMA. The 14-day Relative Strength Index (RSI) recently climbed from oversold territory, now standing at 43 and aiming for the first resistance level at 60.

Potential Price Directions for AVAX

If AVAX breaches the falling wedge pattern, a potential rally of 76% could elevate its price to $58. Conversely, sustained bearish momentum might see support levels at $23.51 or even $19.54. In the short term, a recent breakout from an inverse head and shoulders formation implies a potential 7% rise, possibly edging AVAX’s price to around $30.07.

Impact of ETF Speculation

The recent elevation in AVAX’s price is closely linked to ETF rumors. VanEck’s Solana ETF application has spurred speculation about other altcoins, such as Avalanche, being considered for ETFs shortly. A crypto investor named Quinten listed several altcoins, including Avalanche, as potential ETF candidates, thereby fueling positive sentiment around AVAX.

Conclusion

The noticeable uptick in AVAX’s value is primarily driven by ETF speculation and encouraging technical patterns. Investors should remain vigilant about market updates and technical indicators to craft sound investment choices. Watch out for ETF application news, observe breakouts from the falling wedge for bullish signals, and monitor RSI levels to gauge overbought or oversold conditions.