Key Takeaways
Avalanche [AVAX] held steady near its triangle support, with the RSI at 51 and Parabolic SAR turning bullish. The TVL rose to $1.9 billion too. Also, Grayscale’s ETF filing signaled possible institutional inflows.
Avalanche [AVAX] has held steady on the price charts over the last 24 hours, with the same only seeing minor movement after gaining by +10% in just 30 days.
In fact, an analysis suggested that bullish momentum could soon be ramping up. And yet, at the time of writing, fresh selling pressure across the market seemed to be complicating the outlook for the altcoin.
AVAX’s bullish move under pressure
On the 4-hour chart, AVAX has been trading within a bullish symmetrical triangle – A pattern often linked to major rallies.
At press time, the price was hovering near its triangle support, hinting at possible momentum if the resistance was breached.
Source: TradingView
Analysis indicated that any move beyond the resistance was likely to encounter downward pressure at its Fibonacci levels. The $24.8-zone has already forced at least two pullbacks. Naturally, if momentum persists, this level would be the next major test for the altcoin.
Meanwhile, the crypto’s technical indicators suggested that the potential for significant upside remains intact.
The Parabolic SAR showed dotted markers below the price – Indicative of early rally conditions. Continuation of this pattern would reinforce bullish pressure.
Source: TradingView
Finally, the Relative Strength Index (RSI) stood at 52.3 and seemed to be heading north – A sign of the market’s bullish outlook.
Looking at the altcoin’s off-chain analysis
Off-chain metrics also strengthened the bullish case.
According to DeFiLlama, Total Value Locked (TVL) grew by 1.8% to $1.9 billion, hinting at persistent network activity.
Source: DeFiLlama
That’s not all though as decentralized exchange (DEX) trading volumes have also been rising steadily.
Over the past three days alone, figures for the same climbed by $67 million to $290.13 million. Such a hike in on-chain activity often foreshadows breakouts.
Is pending AVAX ETF approval the catalyst?
Here, it’s worth pointing out that the market’s momentum came on the back of Grayscale’s late-August filing with the U.S Securities and Exchange Commission (SEC) for an AVAX exchange-traded fund (ETF).
This filing alluded to growing institutional demand. If approved, it could bring significant inflows of capital to the asset.
In fact, Grayscale’s move builds on VanEck’s previous filing for an AVAX ETF, reinforcing the sense of rising investor interest. If approved, an AVAX ETF could spark institutional inflows and provide a strong tailwind.
