Avalanche: ETF Inflows Hit All-Time High, But Price 'Stalls'

▲ Avalanche (AVAX)

Avalanche (AVAX) recorded the largest-ever spot ETF capital inflows. However, it is failing to overcome downward pressure, being blocked by technical resistance.

According to cryptocurrency media FXStreet on April 28 (local time), Avalanche's price continues to trade sideways, trapped below its key technical barrier, the 50-day exponential moving average. SoSoValue data revealed that a record $8.75 million flowed into Avalanche spot ETFs on Monday alone. Despite these record institutional inflows, Avalanche's price is showing a sluggish trend, trading below the $9.3 mark as of Tuesday. Market experts attribute this to geopolitical uncertainties between the United States and Iran, which have dampened overall investor sentiment in the cryptocurrency market.

In the derivatives market, investor sentiment towards Avalanche also appears to remain negative. According to CoinGlass data, Avalanche's long-short ratio recorded 0.74, nearing its lowest point in a month. A figure below 1 suggests that more traders are betting on a price decline. However, the funding rate is showing slight signs of improvement, offering a clue for a potential sentiment recovery. As long as the position imbalance in the futures market is not resolved, a short-term price rebound is unlikely.

The Relative Strength Index (RSI), a technical indicator, is currently at 52.79, remaining in the neutral zone and failing to provide a clear direction. The primary resistance level observed on the daily chart is around $9.45, where the 50-day exponential moving average converges with recent highs. Even if this resistance is breached, a horizontal resistance level near $10.12 stands in the way, suggesting a challenging path ahead for a sustained upward move. A clear establishment above the resistance level, accompanied by significant trading volume, is necessary before a genuine trend reversal can be anticipated.

The initial downside support level is formed around $8.6, with $8.32 considered the next critical line. If Avalanche's price falls below $8.32 on a daily closing basis, there is a risk of a further deepening of the long-term downtrend. Conversely, if it successfully reclaims above $9.45, immediate downward pressure will ease, providing an opportunity to re-challenge the $10 mark. Currently, Avalanche is locked in a tug-of-war within a narrow price range, as strong institutional buying clashes with cautious market sentiment.

Avalanche's medium to long-term growth hinges on the expansion of subnets within its network and the adoption rate of real-world asset tokenization. The recent utilization of the Avalanche ecosystem by major financial institutions like BlackRock and JP Morgan demonstrates a strengthening of its fundamental capabilities. Cryptocurrency market participants are closely monitoring for the moment when fundamental improvements translate into a technical breakout on the charts. For the time being, managing volatility driven by macroeconomic indicators and geopolitical news is expected to be a key factor determining investment returns.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*