Avalanche (AVAX) prices have seen a short-term decline, but the overall trend remains positive due to increasing institutional interest.
Short-Term AVAX Price Correction
The AVAX price tested the critical resistance level at $27, reaching an intraday high of $27.40 before facing a pullback to $25. While the RSI remains at 64, indicating continued momentum, the formation of a bearish divergence on the daily chart suggests that bulls may be losing strength.
Institutional Adoption of Avalanche
Despite short-term corrective trends, the project's fundamental indicators remain strong. Grove Finance, an institutional credit protocol, announced its plan to deploy up to $250 million in real-world assets on the Avalanche platform to strengthen its position in tokenization.
Future Growth Prospects
With the recent correction, the AVAX price was supported by the 20-day EMA, which is likely to serve as support during this decline. The bullish crossover between the 20-day EMA and the 50-day SMA suggests that the overall upward trend remains intact, and AVAX may attempt to break through the $27 level again.
Considering the current market conditions and increasing interest from institutional players, Avalanche remains a focal point despite short-term corrections.