What to know
- VanEck launched the first U.S. spot AVAX ETF (VAVX), giving easy access to Avalanche through regular brokerage accounts.
- AVAX bounced from oversold levels, but low trading volume shows the move is still fragile.
- Price is stuck between $11.50 support and $13 resistance, with a bigger move likely next.
Avalanche (AVAX) saw a small but important price jump over the last 24 hours, rising about 1.5% and outperforming the broader crypto market. While the overall crypto market gained around 0.89%, AVAX managed to do better, even though it is still in a longer-term downtrend.
At the time of writing, Avalanche was trading near $11.76, moving in a tight range between $11.30 and $12.73 over the past week. On a monthly level, AVAX is still down about 8%, and on a yearly basis, it remains nearly 66% lower, showing that the token is still recovering from a long period of weakness.
VanEck Launches First U.S. Spot AVAX ETF
The biggest news driving interest in Avalanche is the launch of the first U.S. spot Avalanche ETF by VanEck. The fund started trading on Nasdaq under the ticker VAVX on January 26. To attract early investors, VanEck announced it will waive fees on the first $500 million in assets until the end of February. The ETF gives direct exposure to the price of AVAX and also includes staking rewards, which means the fund can earn extra returns by helping secure the Avalanche network.
VanEck Director of Digital Assets Kyle DaCruz said Avalanche is unique in that it can link traditional finance and blockchain, in a statement. “Avalanche’s architecture is uniquely positioned to bridge the gap between traditional finance and the on-chain economy, focusing on verifiable, real-world utility,” DaCruz said.
This opens the door to institutions, wealth managers, and conservative investors who usually avoid crypto platforms. In the past, ETF launches in crypto have often led to short-term price jumps because of new money coming in and improved market confidence. Another key detail is that the fund may stake up to 70% of its AVAX holdings. If demand grows, this could lock a large amount of AVAX out of the open market, reducing available supply and supporting price stability over time.
Oversold Price Levels
AVAX was also technically oversold. Its short-term price indicator dropped below key levels that traders often see as “too cheap.” This triggered short-term buying, as traders looked for a bounce.
Prices moved up from around $11.69 to $11.74, showing a small recovery. However, trading activity tells a cautious story. Avalanche’s 24-hour trading volume fell about 16% to $272 million, which means fewer people are actively buying and selling. This suggests the bounce is fragile and mostly driven by short-term traders rather than strong long-term investors.
Traders Position for a Bigger Move
Market data shows a mixed picture. While trading volume is falling, open interest in futures markets is rising, meaning more traders are opening new positions. This usually signals that people expect a bigger price move soon, even if they are unsure of the direction.
Right now, AVAX is stuck between support near $11.50 and resistance around $13.00. A break above $13 could lead to stronger upside, while a drop below $11.50 could restart selling pressure. Beyond price action, Avalanche’s network activity is slowly improving. The number of active addresses has crossed 1.38 million, and new integrations are increasing real-world use cases. These changes don’t always move prices immediately, but they help build long-term confidence in the project.
Conclusion
Avalanche’s recent price rise is driven mainly by the VanEck AVAX ETF launch, which brings regulated access and new demand from traditional investors. At the same time, oversold price levels triggered short-term buying, helping push AVAX higher.
However, falling trading volume and mixed market signals show that confidence is still cautious. AVAX is at a critical point, trading near $12, where a major catalyst meets a tight price range.
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