- Avalanche’s price dropped to the $20 support level on Friday, marking an 8% decline over the past 24 hours.
- Nasdaq has submitted a filing to list Canary Capital’s AVAX spot ETF, pending approval from the US SEC.
- Bullish traders are considering a possible rebound as AVAX’s current support aligns with the 50-day moving average.
AVAX holds critical support at $20 amid market volatility
Avalanche (AVAX) has experienced selling pressure lately, falling to the $20 support level on Friday with an 8% drop in the last 24 hours. This decline comes in the wake of broader market uncertainty, which has influenced sentiment within the cryptocurrency space.
Nonetheless, AVAX’s stability at the $20 mark indicates strong investor interest in this price range.
Avalanche Price Analysis | March 28
Recent events in the market have added to the volatility, with macroeconomic concerns, regulatory shifts, and liquidity changes affecting cryptocurrency price trends.
Although Bitcoin and Ethereum have also seen declines, AVAX’s diminishing trading volume as it neared the $20 level suggests that optimistic traders may be attempting to establish a local bottom.
Nasdaq’s filing sparks institutional interest in Avalanche
In a noteworthy development for Avalanche, Nasdaq has applied to list Canary Capital’s AVAX spot ETF, a move that could facilitate greater institutional engagement.
This filing, currently awaiting approval from the US Securities and Exchange Commission (SEC), showcases a rising interest in regulated investment vehicles that provide exposure to AVAX.
The proposed AVAX spot ETF aligns with the growing trend of traditional financial institutions acknowledging digital assets as a legitimate asset class.
If granted approval, this ETF would enable institutional investors to access Avalanche without the need to directly hold or manage AVAX tokens.
This could lead to a significant increase in demand, akin to the surge seen with Bitcoin and Ethereum-based ETFs.
Market analysts believe that the ETF listing could revolutionize Avalanche, potentially driving prices upward as institutional capital flows into the ecosystem.
The timing of this development is particularly pivotal, coinciding with a wider call for crypto ETFs in major financial markets.
While short-term fluctuations continue to be a concern, Nasdaq’s filing indicates growing institutional confidence in Avalanche’s long-term prospects.
AVAX price outlook: Losing $20 support may provide buying opportunity
The price of AVAX hovers near the critical $20 support level, a key factor that could determine its next significant movement.
On the 12-hour chart, there is a marked 8.40% decline, with AVAX currently trading at $20.17.
The red candlesticks indicate bearish momentum, while the 50-day moving average at $19.74 acts as immediate support.
If this level fails to hold, the next downside target would likely be around $18, where a stronger demand zone may trigger a rebound.
AVAX price forecast
However, the Moving Average Convergence Divergence (MACD) indicator presents a more complex situation.
While it remains in positive territory, the MACD line (blue) is exhibiting signs of rollover, approaching a bearish crossover with the signal line (orange).
A confirmed crossover could heighten selling pressure, potentially undermining near-term bullish sentiments.
Conversely, if bulls defend the $20 level and propel AVAX above the 21.99 moving average, a relief rally toward $23 may occur.
Volume analysis, with 828,220 AVAX exchanged, reflects increased market activity. A decisive move in either direction will depend on whether AVAX maintains its position above key support or yields to bearish pressure, offering a strategic entry point for traders.