- The broader cryptocurrency market declined, but Avalanche (AVAX) surged with gains across all timeframes.
- Avalanche (AVAX) rose 5.1% in 24 hours, 19.7% for the week, 38.9% over 14 days, and over 51% during the past month, per CoinGecko data.
- Analysts connect the rally to a potential ETF filing for AVAX and planned fundraising efforts to buy more of the token.
- The Federal Reserve announced a 25 basis point interest rate cut, which may have contributed to increased investment risk appetite.
- According to CoinCodex, AVAX could increase another 20% prior to an expected price correction.
The cryptocurrency sector faced a general downturn despite a recent interest rate reduction by the Federal Reserve. However, Avalanche (AVAX) stood out, experiencing consistent price increases while most other digital assets traded lower.
Data from CoinGecko shows that AVAX rose by 5.1% in 24 hours, with larger gains seen over the preceding week, biweekly, and monthly periods—up 19.7%, 38.9%, and 51.3% respectively. Meanwhile, Bitcoin (BTC) struggled to break the $117,000 resistance level, and most top cryptocurrencies moved downward.
According to the article, three main influences may have boosted AVAX. First, Bitwise reportedly filed an S1 registration statement with the U.S. Securities and Exchange Commission for a possible Avalanche ETF. Exchange-traded funds (ETFs) are investment products that track the value of an underlying asset. Recent launches of crypto-based ETFs have driven demand for similar tokens.
Second, news emerged about the formation of two new treasuries intended to raise $1 billion for buying AVAX tokens. Corporate treasuries, which are organizations’ cash and asset management units, have played a notable role in market trends.
A third likely factor is the Federal Reserve’s cut of 0.25 percentage points to interest rates. Lower interest rates typically encourage more risk-taking by investors, which may have made AVAX more attractive.
Price Prediction site CoinCodex expects the rally to continue, suggesting AVAX may climb to $41.48, which is roughly 20% higher than current levels, before seeing a market correction.
Market watchers remain focused on whether the positive momentum can persist amid broader market weakness and changing investor sentiment.
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