Avalanche: ETF Inflows at All-Time High... Price 'Stalls'

▲ Avalanche (AVAX)

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

According to FXStreet, a cryptocurrency specialized media outlet, on April 28 (local time), Avalanche's price continues to trade sideways, trapped below the 50-day exponential moving average, a key technical barrier. SoSoValue data revealed that a record-breaking $8.75 million flowed into Avalanche spot ETFs on Monday. Despite these record institutional inflows, Avalanche's price is showing a sluggish trend, currently trading below the $9.3 mark as of Tuesday. Market experts attribute this to geopolitical uncertainties between the U.S. 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 hint for psychological recovery. Unless the position imbalance in the futures market is resolved, a short-term price rebound is unlikely.

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

The initial downside support level is formed at the $8.6 mark, with $8.32 considered the next last line of defense. If Avalanche's price falls below $8.32 on a daily closing basis, there is a risk that the long-term downtrend could deepen further. Conversely, a successful return above $9.45 would alleviate immediate downward pressure and provide an opportunity to reattempt reclaiming the $10 mark. Currently, Avalanche is engaged in a tug-of-war within a narrow trading 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 the strengthening of its fundamental capabilities. Cryptocurrency market participants are closely watching for the moment when fundamental improvements translate into a technical breakout on the charts. For the time being, managing volatility based on 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.*