Avalanche (AVAX) is tightening into a significant decision point after months of sideways movement. With price compressed and volume thinning, traders are bracing for a potential breakout or a deeper pullback.
AVAX Approaches Key Resistance Level
As of press time, Avalanche (AVAX) is trading around $24.31 after a 2.49% drop in the last 24 hours but shows a 3.41% gain over the past week. The price is pressing just below a key resistance zone at $27, while solid support remains near $19.
This triangle pattern has kept price action tight, with bulls and bears battling at key trendlines. Each rejection from resistance has been met with higher lows from the support side. The 50-day moving average has helped AVAX bounce back during recent dips.
Volume and Momentum Indicators Show Mixed Signals
Despite the bullish setup on the higher timeframes, lower timeframes suggest caution. The 4-hour chart shows AVAX stuck near $24.17, with several failed attempts to clear the $25 mark. Sellers are stepping in early, keeping prices capped.
MACD momentum has flipped bearish, with the blue line crossing below the signal line and the histogram slipping deeper into red. RSI is sitting at 45.61, below the 50-neutral zone—showing that buyers are starting to lose steam.
Volume trends from August 31 to September 6 were volatile. A dip below $9.75B on September 1 was followed by a recovery above $10.75B on September 4, before settling back around $10.25B. This points to indecision among traders.
Avalanche Ecosystem Sees Growing Institutional Interest
In a boost for investor sentiment, Bitwise has officially registered a spot Avalanche ETF in Delaware. The move, reported via X on September 6, could mark the start of broader institutional interest.
Meanwhile, Avalanche’s Real-World Asset (RWA) market cap jumped nearly 58% in recent days to reach $305.25 million across 39 instruments. The number of holders also climbed to 7,725, showing growing adoption.
Stablecoin transfer volume has surged 6x in the last three months, with the total market cap of stablecoins up 30% in just the past month. AVAX now has 3.44 million stablecoin holders.
Institutional players like Franklin Templeton, Grove Finance, and Centrifuge are among those engaging with Avalanche—blending traditional finance with DeFi in meaningful ways.
Avalanche (AVAX) continues to approach critical levels of resistance and support. Growing institutional interest may impact future price trends.
