Avalanche price continued rising on Friday morning, reaching its highest level since January 27. AVAX was trading at $35.17, up by 137% from its lowest level this year, bringing its market capitalization to over $14 billion.
Avalanche Price Surge Driven by Key Catalysts
The AVAX price surge is being driven by key catalysts. First, the Avalanche Foundation is working to raise $1 billion, which will be used to create two treasury companies in the coming months. Ultimately, these funds will be used to accumulate AVAX tokens, which will fundamentally drive its demand.
Second, there are rising odds that the SEC will approve spot AVAX ETFs, allowing investors to accumulate the token. Bitwise became the latest company to file for an AVAX fund this month, joining VanEck and Grayscale.
The odds of an AVAX ETF are high because it is a layer-1 chain that operates like Ethereum, which already has a few funds, including those by companies like BlackRock and Fidelity.
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Further, the Avalanche ecosystem is doing well, with PayPal expanding its PYUSD token to the network. This happened after KRW1, the first South Korean won stablecoin launched on the network.
Artemis data shows that the stablecoin supply in the network has jumped by 32% in the last 30 days to $1.9 billion, while the number of transactions jumped to over 27.2 million. The volume in the last 30 days was over $142 billion.
More data shows that the user activity in the Avalanche network continues to grow. For example, LFJ users have jumped by 40% in the last 7 days, while Pharaoh Exchange, Odos Protocol, and Woofi have jumped by double digits.
DeFi activity on the Avalanche network is soaring. According to DeFi Llama, the volume soared to $708 million in the last 24 hours and $13.7 billion in the last 30 days. This makes it bigger than popular chains like Sui, Unichain, and Polygon.
AVAX Price Technical Analysis
The daily timeframe chart shows that the AVAX price formed a double-bottom pattern at $15.6 and a neckline at $26.70. It has moved above this neckline and formed a golden cross pattern.
The Relative Strength Index (RSI) has moved to the overbought level of 65, while the Average Directional Index (ADX) has soared to 23, the highest point since February 22nd.
Therefore, the most likely scenario is where the token continues rising as bulls target the next important resistance level at $50, which is up by about 45% above the current level.
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