AVAX eyes $40 as Bitwise files for an AVAX ETF; check forecast

The crypto market has bounced back from yesterday’s dip, with Bitcoin trading around the $116k mark once again.

However, the biggest winner among the top 20 cryptocurrencies by market cap is Avalanche’s AVAX. 

The coin outperformed other major cryptocurrencies and could be preparing for a further breakout over the coming hours and days. 

Bitwise files for AVAX ETF

AVAX is up 7% in the last 24 hours and is now trading at $30.52. The primary catalyst behind AVAX’s rally is the filing of an Avalanche spot exchange-traded fund (ETF) by digital asset manager Bitwise.

Bitwise submitted an S-1 filing to the SEC on Monday as it looks to expand its crypto-focused ETF portfolio.

The filing means that Bitwise has joined VanEck, 21Shares, and Grayscale in filing with the SEC to launch an AVAX ETF.

The fund would allow institutions to gain access to AVAX, one of the leading cryptocurrencies in the world. 

In addition to that, Avalanche is also experiencing a surge in network activity. Data obtained from DeFiLlama revealed that the Total Value Locked (TVL) on the Avalanche ecosystem has surpassed $2 billion, up from $1.925 billion in the last week.

This increase suggests that the user activity on Avalanche has significantly increased. 

Furthermore, DEX volume on Avalanche recorded more than $2 billion in trading volume for the eighth consecutive week, while stablecoin market cap on the blockchain also rose 5% to hit $2.31 billion.

The rising liquidity and activity on the Avalanche blockchain could translate into more demand for the AVAX token and a subsequent surge in price. 

AVAX eyes $40 after breakout above $30

The AVAX/USD 4-hour chart has switched bullish after Avalanche surpassed the $30 psychological level.

It is currently trading at $30.6, which aligns with the 38.2% Fibonacci retracement level from the $55 high recorded on December 4 to the $14.66 low on April 7.

The momentum indicators have also switched bullish, with the RSI of 61 indicating that buyers are currently in control of the AVAX market.

Avalanche’s Open Interest hit $1.36 billion, suggesting that increased capital flow from investors could result in further gains for AVAX.

The MACD lines have also crossed over into the positive zone, suggesting a bullish trend. 

If the bullish trend continues, AVAX could rally towards the next major resistance level at $35.22 before targeting the $40 mark over the coming days.

The December high of $55 remains AVAX’s medium-term target. 

However, if AVAX faces a pullback, it could retest the 50-day Exponential Moving Average (EMA) at $25.13. An extended bearish run would see AVAX drop to the $20 low created in August. 

The current bullish momentum could be further supported by the upcoming FOMC, with a rate cut potentially on the cards.

The post AVAX eyes $40 as Bitwise files for an AVAX ETF; check forecast appeared first on Invezz