Avalanche (AVAX) forms a bullish triangle: Does the ETF have enough strength to push the price above 24.8 USD?

Avalanche (AVAX) has shown remarkable stability over the past 24 hours, despite slight fluctuations in the market. This cryptocurrency has maintained its positive momentum after rising over 10% in just the last 30 days.

Some technical analysis and on-chain data are currently reinforcing expectations that the bullish trend may soon be further accelerated. However, new selling pressure emerging across the market is complicating and making AVAX's outlook more unpredictable.

Price Movement of AVAX: Pressure and Opportunities Coexist

On the 4-hour time frame, AVAX is trading within a bullish symmetrical triangle pattern – a pattern that is often seen as a signal of preparation for a strong breakout.

At the time of writing, the price of AVAX is fluctuating around the support line of this model. This indicates that if the buying pressure is strong enough to break through the upper resistance, a bullish trend could be triggered.

Source: TradingViewHowever, Fibonacci analysis indicates that any upward movement may face selling pressure at key levels. In particular, the $24.8 area – where the price has had to adjust twice before – will continue to be a decisive testing threshold for the upward momentum of this altcoin.

Technical indicators reinforce outlook

The current technical indicators are providing positive signals, reinforcing the belief that AVAX has the ability to maintain its upward momentum in the near future.

First of all, the Parabolic SAR shows that the indicator dots are below the price line. This is an important signal, often associated with the initial bullish trend. If this pattern continues to be maintained, buying pressure will be further reinforced, thereby opening up opportunities for further advances on the price chart.

In addition, the RSI is currently at 52.3 and showing signs of rising. This trend reflects that buying pressure is gradually gaining an advantage over selling pressure. As the RSI approaches the 60-70 range, the bullish momentum may become clearer and stronger, signaling a high potential for a breakout.

Source: TradingViewThe combination of these signals adds confidence that AVAX still has plenty of room for growth, at least in the short term. This also indicates that market sentiment is leaning towards the positive side, further reinforcing the optimistic outlook for this cryptocurrency.

On-chain data reinforces the uptrend

On-chain data is painting a positive picture for the Avalanche ecosystem, showing strong activity within the network and the potential to support AVAX prices in the current phase.

First of all, the total value locked (TVL) of Avalanche has recorded an increase of 1.8%, reaching 1.9 billion USD according to data from DeFiLlama. This is clear evidence that DeFi protocols on this platform are still maintaining their appeal, while also reflecting the stable expansion of network activity.

Source: DeFiLlamaAlong with that, the trading volume on decentralized exchanges (DEX) has also grown significantly. In just three days, this figure has increased by an additional 67 million USD, bringing the total volume to 290.13 million USD. This significant increase is often associated with greater interest from investors, while also serving as an early signal for potential strong price fluctuations that may soon occur.

The simultaneous increase in TVL and DEX volume has further reinforced the argument that the price rise of AVAX is not only driven by market sentiment but also based on the solid fundamentals of the ecosystem. This is the key factor that creates differentiation and enhances the confidence of long-term investors.

AVAX ETF: A potential catalyst for the new wave?

One important factor driving the optimistic sentiment of investors recently is the information about the AVAX ETF. At the end of August, Grayscale filed with the (SEC) for approval of an exchange-traded fund based on AVAX.

This move comes right after VanEck also filed for an AVAX ETF, indicating the growing interest of financial institutions in Avalanche. If any of these filings are approved, the AVAX ETF could become a strong catalyst, bringing in new capital from institutional investors and creating a significant boost for the value of the coin.

Avalanche is at a crucial stage, as both technical signals and on-chain data lean towards a bullish outlook, while macro factors such as the AVAX ETF could play a strong catalytic role.

However, the resistance zone of 24.8 USD and the selling pressure across the market remain significant challenges that need to be overcome. If successful, AVAX could potentially usher in a new growth cycle, supported by both speculative capital flows and increasing interest from institutions.

Emma