Avalanches have recorded a sharp rise in the last 24 hours, with Avax prices rising more than 11%. The rally was supported by reports that the avalanche is trying to raise $1 billion in the United States to establish a two-cryptocurrency-focused investment vehicle.
The initiative aims to strengthen the avalanche status as a major digital ledger in the capital market.
An avalanche chooses more than just an investor’s profit
Investor interest shows signs of new strength. The Chaikin Money Flow (CMF) indicator rose steadily, reaching its highest point in nearly two months. This rise confirms that capital is flowing into the avalanche as traders expect continuous profits.
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The consistent rise in CMF suggests that Avax is seen as a strong candidate for short-term profits and long-term accumulation. With momentum backing buyers, tokens gained an edge, allowing the market to maintain upward pressure despite recent volatility in the broader crypto sector.
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The momentum of the avalanche macro is also positively in line with the broader trends. The correlation of Altcoin with Bitcoin is currently at 0.80, which is a sign of strong alignment. This connection indicates that Avax is likely to reflect Bitcoin’s trajectory if BTC maintains the current uptrend.
Given Bitcoin’s recent recovery, Avax investors are optimistic that prices will continue to rise. As BTC holds companies above critical support levels, the avalanche is positioned to follow suit, offering further verification for bullish traders betting on higher targets.
avax price faces resistance
At the time of writing, Avax is trading at $29.00 after a 11.3% increase in one day. The Surge has pushed the token up to seven months high, but is currently facing resistance at $30.00.
If investor enthusiasm is retained, the avalanche could reverse the $30.00 resistance to support and move to more than $31.15. A stronger correlation between sustained inflows and Bitcoin will strengthen this bullish trajectory.
However, the risk remains. If investors start booking profits at the current level, Avax could lose momentum. Soaking up with $27.00 in support or even lower support to $25.86 will erase many of the recent gatherings and invalidate bullish papers in the short term.
