Avalanche Price Prediction: AVAX Surges 3% as its ETF Debut on Nasdaq Boosts Bullish Sentiment

Highlights:

• The Avalanche price is trading at $12, marking a 3% increase today.
• The recent rally comes as the AVAX ETF obtained the Nasdaq listing, reinforcing the bullish outlook.
• The AVAX price eyes $12.90 immediate resistance as bullish momentum builds.

The Avalanche (AVAX) price is trading at $12, marking a 3% surge today, which is an indication of stabilization. The daily trading volume has notably increased by 18%, signalling heightened investor confidence.

Meanwhile, the introduction of Avalanche spot Exchange Traded Funds (ETFs) by VanEck this week on Nasdaq is an indicator of a better sentiment in the market. Moreover, AVAX has encouraging derivatives data, which indicate that the asset can recover in case of sustained bullish momentum.

On Monday, asset manager VanEck in the US announced the launch of a spot Avalanche ETF (VAVX) that will come to its portfolio of digital asset-centred ETFs. AVAX increased 2% that day after this announcement and proceeded with its gains. Notably, the first-ever AVAX ETF obtained its listing on Nasdaq. 

This is good news for the long-term price of AVAX, as it will enable investors to have exposure without necessarily having AVAX in their hands. It will also increase its liquidity, credibility, and general adoption.

On the derivatives side, data provided by CoinGlass indicates that the futures Open Interest (OI) in Avalanche at exchanges has risen to $494.08 million on Wednesday. This is compared to $437.49 million on January 21. A rising OI signifies new money in the market, which may drive the Avalanche price surge in the coming days.

AVAX Price Surges 3% as Bulls Target $12.90 Resistance

The AVAX/USD price chart on the daily timeframe shows a rebound towards the consolidation channel, and is trying to move upward again. For a period, the price followed a clear bearish curve, with sellers pushing the coin below both moving averages. This continued until Avalanche reached the consolidation zone between $11 and $14, where the price stopped falling and began to move sideways.

Currently, the bears are having the upper hand, as the 50-day SMA sits at $12.90, while the 200-day SMA is around $20. This shows an intense bearish grip in the AVAX market, as bulls attempt a recovery.

Recently, AVAX broke above the lower boundary of the consolidation zone with strong momentum. This breakout shows that buyers are building momentum and want to push the price higher. If this momentum continues, Avalanche bulls may obliterate the immediate resistance at $12.90. Holding above the 50-day SMA will support the bullish view, with the next possible target around $14-$20.

The momentum indicators show mixed signals. The RSI is currently around 42.67, which shows weak bullish strength but also leaves room for a relief rebound if the buyers step in. The MACD has also crossed below the signal line and remains below the neutral territory, reinforcing that sellers are having the upper hand.

On the other hand, if the Avalanche price drops back below $11, AVAX may return to below the consolidation zone and test the lower support at $9. This level remains the most important support for the bulls in the AVAX market.