Key takeaways
Avalanche’s AVAX is trading above $12 after adding 2% to its value.
The rally comes after Grayscale filed an updated form for its Avalanche ETF.
AVAX surges past $12 as Grayscale updates AVAX ETF filing
The cryptocurrency market has been bullish over the last 24 hours, with Bitcoin and other major coins and tokens currently in the green. AVAX, the native coin of the Avalanche, is one of the best performers among the top 30, up by more than 2% in the last 24 hours.
The bullish performance saw AVAX top the $12 mark and could rally higher in the near term. The rally can be attributed to Grayscale updating the sponsor details to Grayscale Investments Sponsors LLC in the S-1 form filed for the Avalanche Trust conversion into an ETF.
The crypto asset manager has yet to reveal any management or staking fees or waivers. A listing of this ETF on Nasdaq could boost institutional support for AVAX.
Furthermore, AVAX saw a surge in fresh capital inflows as futures Open Interest (OI) jumped 1.66% in the last 24 hours, reaching $499.87 million. This indicates that traders are building new positions, including long and short.
Despite that, the negative funding rate of -0.0113% indicates that traders are willing to hold short positions by paying a premium.
AVAX eyes $13.50 resistance level
The AVAX/USD 4-hour chart is bearish and efficient despite the coin adding 2% to its value in the last 24 hours. The rally comes amid growing retail demand after AVAX recovered from the dip that saw it retest the $11.18 support level.
The technical indicators have improved, suggesting a growing bullish bias. The RSI of 52 is above the neutral 50, indicating that the bulls have regained control of the market. The MACD lines have also crossed into the bullish territory, indicating a bullish bias.
If the rally continues and the daily candle closes above the $12.78 resistance, AVAX could rally towards the $13.5 level.
However, AVAX could retest the $11.18 support level if the bulls fail to take advantage of the growing momentum.
