Avalanche's native token AVAX trades near crucial $34 support as institutional backing grows, though technical analysts warn the cryptocurrency faces significant resistance that could stall its recent rally attempt.
What to Know:
- Avalanche has gained 43% monthly but struggles to break above $35-$36 resistance zone despite institutional investment interest
- AgriFORCE rebranded as AVAX One to become first Nasdaq-listed Avalanche treasury company, targeting $550 million cryptocurrency accumulation
- Technical analysis shows AVAX needs September close above $38.40 to avoid potential retest of $29-$30 support levels
Institutional Capital Flows Into Avalanche Ecosystem
Avalanche continued its recovery Wednesday, retesting the $34 area as support after falling to $29 earlier this week. The cryptocurrency bounced quickly toward a seven-month high of $36.1 Tuesday, driven by institutional interest in the blockchain ecosystem.
AgriFORCE Growing Systems announced its transformation into a crypto treasury company under the name AVAX One. The rebranding creates the first Nasdaq-listed entity focused specifically on Avalanche accumulation. Hivemind Capital and SkyBridge Capital founder Anthony Scaramucci support the company's plan to raise $550 million for cryptocurrency purchases.
The Avalanche Foundation separately disclosed plans to raise $1 billion for two US-based crypto treasury vehicles. The nonprofit organization behind the blockchain project aims to establish dedicated investment structures focused on the ecosystem's growth.
South Korean crypto custodian BDACS launched KRW1 last week, introducing the country's first Korean won-pegged stablecoin on Avalanche's network. The development represents expanding stablecoin infrastructure on the platform. Ava Labs previously secured a strategic partnership with Toyota Blockchain Lab to develop the Mobility Open Network. The blockchain-based system targets emerging applications including robotaxi fleet management.
Technical Analysis Reveals Critical Resistance Zone
Analyst Rekt Capital observed that Avalanche completed a strong three-month rally within its Macro Wedge pattern. The analyst cautioned that "further work" remains necessary for sustained bullish trend continuation.
AVAX gained 43% over the monthly timeframe, establishing the $30 level as support two weeks ago. The cryptocurrency attempted twice to reclaim $35 resistance but failed to maintain breakout momentum above this threshold.
Avalanche has traded within a Macro Wedge pattern since early 2024, with prices oscillating between the formation's upper and lower boundaries.
The recent rally pushed prices toward the pattern's resistance zone, where the critical breakout level sits around $38.40.
The analysis indicates AVAX must achieve a September close above the Macro Downtrend, followed by successful post-breakout retest of this level as support. A monthly close above this area would "open the path toward repeating bullish history similar to mid-2021 and early 2024."
Failure to secure a monthly close above $38.40 could trigger a retest of $29-$30 support, risking further decline toward the monthly opening of $23.6. The cryptocurrency must reclaim the $35-$36 zone to target Macro Wedge resistance, where significant selling pressure concentrates.
Despite the warning, the analyst noted that support region retesting could "extend base-building further into Q4, ultimately enabling a more sustainable breakout attempt later."
Closing Thoughts
AVAX currently trades at $33.75, down 1% daily, as institutional interest supports the cryptocurrency while technical resistance threatens rally continuation. The September close will determine whether Avalanche breaks free from its wedge pattern or requires additional consolidation before attempting sustained upward movement.