- AVAX struggles near $26 as RSI is below 50, indicating weak momentum despite a bullish MACD crossover.
- Avalanche gains long term strength as BlackRock, Citi, and J.P. Morgan deploy tokenized assets on its blockchain.
- A breakout above $26 with rising volume could push AVAX to $30–$35, while rejection risks a drop to $20 or lower.
AVAX has entered a crucial technical phase after its rejection near the $26. The asset previously rallied from below $20 lows following a broader crypto market uptick earlier in 2024. That bounce indicated short term bullish activity, yet recent price behavior has shown hesitation.
Price has failed to breach $26, a resistance level that now limits upside momentum. According to Avalanche’s official X page, BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) launch on Avalanche could be pivotal in real-world asset tokenization. While this may influence long term sentiment, AVAX’s near term direction depends heavily on current technical indicators and market activity.
Technical Indicators Show Weak Momentum
AVAX is within a consolidation phase, with smaller candlesticks and reduced volatility suggesting indecision. RSI is at 47.82 and is climbing, though it stays below the midline. This places the asset in a neutral range, lacking strong bullish momentum.
For sustained gains, RSI must rise above 50 and ideally approach 55. The MACD shows a bullish crossover, but it is below the zero line. The MACD line is at 0.557, and the signal line is -2.883. This crossover shows early bullish signs but lacks strong confirmation without additional volume and price action support.
Volume and Sentiment Shows Cautious Optimism
Volume is moderate at 77K, suggesting measured interest. Market sentiment is mixed, despite Avalanche’s growing role in the tokenized asset market. According to Avalanche, BlackRock joins Franklin Templeton, Citi, and J.P. Morgan in deploying tokenized assets on its chain.
These firms now utilize Avalanche for real world asset tokenization, supported by features like EVM compatibility, sub second finality, and customizable L1s. Still, this institutional engagement has not yet translated into a clear breakout for AVAX. Price remains below $26, with broader conviction still forming.
Price Zones to Monitor
AVAX has immediate resistance at $26, followed by $30 at mid range, and a broader cap between $37 and $40. Minor support is at $22.50, strong support at $20, and $17.50 as a breakdown level. A slip below $20 could lead to further declines.
On the upside, if AVAX breaks $26 with increasing volume and RSI above 50, it could target $30 to $35. Further strength may push toward $40. However, rejection at $26 may drag AVAX back to $20. A break below that risks declines toward $17.50 or even $15.
The $26 mark is important. Technical signals, volume changes, and institutional sentiment will determine AVAX’s next directional move.
