Avalanche (AVAX) just hit a bit of a snag. The price tested the $27 neckline of a double bottom pattern, peaking at $27.40, only to be rejected and tumble back down to $24,7. Ouch, right? But don’t write it off just yet; there’s still hope.
The RSI’s still bullish at 64, so there’s still some fuel in the tank, but here’s the catch: a bearish divergence is starting to show up on the daily chart. While AVAX made a higher high compared to its swing high on July 21, the RSI didn’t follow suit. It printed a lower high, suggesting that the bulls might be running out of steam.
The good news? The recent dip to $22.50 was stopped in its tracks by the 20-day EMA, which might just be the support AVAX needs for its next leg up. Plus, the bullish crossover between the 20-day EMA and the 50-day SMA is still intact, so the broader uptrend is still very much in play. But a break above that pesky $27 barrier? It’s going to take some work.
Avalanche’s Institutional Muscle is Growing
While the price action might be bearish in the short term, the fundamentals are looking pretty strong. Institutional interest in Avalanche is on the rise, and here’s why: Grove Finance, a big credit protocol in the Sky ecosystem, just announced they’ll be deploying up to $250 million in real-world assets (RWAs) on the Avalanche network. Talk about a big move!
With tokenized assets from big players like BlackRock’s BUIDL and Franklin Templeton’s BENJI already live, Avalanche is cementing its spot as a hub for real-world asset tokenization. So, while AVAX’s price might be taking a breather, the future looks pretty bright for this blockchain.
Alex Shepel
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