In a major development for the crypto space, VanEck’s Avalanche (AVAX) spot ETF, which has a ticker symbol of VAVX, cleared a major hurdle on Saturday, January 24, as indicated by the crypto analyst Nicolas Lemaitre.
As the NASDAQ has certified the firm’s filing of a Form 8-A listing. This is a major step towards the ETF’s launch. Once approved by the SEC, it indicates increasing interest from institutional investors in the AVAX ecosystem.
Although the Nasdaq listing is a positive sign, the focus is now entirely on the SEC’s final review of the S-1 filing. Analysts speculate that if approved, the ETF could potentially give institutional investors a way to invest in the cryptocurrency via a regulated product.
Also Read: Avalanche Validator Node Goes Live: AVAX Eyes $14.80–$21.00 Range
Price Slips Below Key EMAs Amid Bearish Pressure
After passing this major hurdle, traders’ attention has now shifted to the Avalanche’s native token, AVAX. According to the TradingView data, Avalanche (AVAX) is in a short-term downtrend based on the current price movements in the 4-hour time frame. The coin is currently below all the EMAs: 20, 50, 100, and 200. The strong bearish trend in the coin is evident.
The Bollinger Bands are slightly moving apart following the recent fall in the price of the coin. The immediate support is present at $11.95, while the resistance is present in the following zones: $12.23 to $12.52, $12.67, and $13.03 to $13.28.
Source: TradingView
This is further confirmed by the technical indicators, as the EMAs are well placed to support the bearish view. Also, the price is closing in on the lower Bollinger band. As can be seen from the current candles, the bulls are attempting to hold the $11.95 support level. The bears are still in control.
If the price is able to bounce back from the current level, there is a chance of a brief rally towards $12.52. A change in the trend will require the price to break past the $13.03 to $13.28 resistance zone.
AVAX Momentum Indicators Support Cautious Outlook
The bearish trend is also supported by the momentum indicators. The MACD indicator points downward as the MACD line is moving below the signal line. The histogram is also declining, but shrinking bars indicate weaker bearish pressure.
Source: TradingView
The Relative Strength Index (RSI) is at 37.44. This indicates a neutral reading and is also oversold. This suggests that there is a high possibility of a consolidation around $11.95 or a possible upside as buying pressure increases.
Why This Matters
This will be beneficial to institutional investors who will be able to buy the VanEck’s Avalanche (AVAX) ETF, providing liquidity to the crypto assets.
ETF could be the driver to improve the sentiment among investors, stabilize the price of AVAX, and facilitate the growth in the future.
Also Read: Avalanche (AVAX) Faces Critical Weekly Test as Bulls Eye $20 Breakout
