YEREVAN (CoinChapter.com) — Avalanche (AVAX) price is up today, showing a marked increase in its value today, and several key factors offer insight into this price movement.
The AVAX price has risen nearly 7% to $34.25 in the last 24 hours, bouncing off a technical support line. Here are the reasons why Avalanche’s price is up today.
Grayscale Adds Avalanche to Its Investment Fund
Grayscale Investments, a major player in cryptocurrency investment funds, has added Avalanche to its Digital Large Cap Fund. This inclusion signifies a nod of approval from an institutional heavyweight and places AVAX in the spotlight for potential investors. Grayscale’s addition of AVAX, accounting for 1.14% of the total fund value, likely spurred investor confidence, contributing to the cryptocurrency’s price rise.
Fundamental Strength
Fundamentally, AVAX’s surge can be partly attributed to the strong underlying demand for the coin, especially in light of Ethereum’s rising transaction fees.
Avalanche’s competitive gas fees, significantly lower than Ethereum’s in December, have made it an attractive alternative for users and developers, bolstering its market standing and potentially influencing its current price trajectory.
Why is Avalanche Price Up — Technical Outlook
From a technical analysis standpoint, despite the price uptick, caution is noted. A bearish divergence has been observed, with the price recording higher highs while the relative strength index (RSI) shows lower highs. This could signal a weakening momentum and suggests that investors should be mindful of potential volatility and price corrections that could bring AVAX to its support levels near $33 and $31.50.
Today’s price increase of Avalanche seems to be driven by a combination of institutional endorsement and strong fundamental appeal. While these factors provide a positive outlook for AVAX, technical indicators suggest a more cautious approach. Investors are advised to monitor these developments closely as they could significantly influence Avalanche’s market dynamics in the future.
