Over the past 24 hours, the price of Avalanche has shown a sharp increase: AVAX has increased by more than 11%. This is due to the news about Avalanche plans to attract $ 1 billion to create two investment funds focused on cryptocurrencies in the United States.
This initiative will strengthen the position of Avalanche as a leading digital registry for capital markets.
Avalanche attracts not only investors
The interest of investors is growing again. The Chaikin Money Flow (CMF) indicator is steadily increasing, reaching the maximum in almost two months. This confirms that capital enters Avalanche, as traders expect further growth.
Constant growth of CMF shows that AVAX is considered as promising for short -term profit and long -term accumulation. With an impulse on the side of buyers, the token retains the advantage, maintaining the upward pressure, despite the recent volatility in the cryptosector.
Avalanche macroeconomic impulse is closely related to common market trends. The correlation of altcoin with bitcoin at the time of writing is 0.80, which indicates a strong connection. This means that Avax will probably follow the coin if the BTC continues to grow.
Given the recent bitcoin growth, AVAX investors are optimistic about further price increase. Since the BTC holds important support levels, Avalanche is ready to follow him, which strengthens the confidence of bull traders aimed at higher levels.
AVAX price is faced with resistance
At the time of writing, AVAX is traded at $ 29, rising by 11.3% per day. This growth led token to the 7-month maximum, but now it is faced with a resistance of $ 30.
If the enthusiasm of investors is preserved, Avalanche will receive a chance to turn the resistance at $ 30 in support, which will move to $ 31.15 or higher. Constant tributaries and a stronger correlation with bitcoin will strengthen this bull trend.
Risks still exist. If investors begin to fix profit at the current levels, Avax risks losing an impulse. The fall to support at the level of $ 27 or even lower to $ 25.86 can negate recent growth and refute the bull script in the short term.
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Source: Cryptocurrency
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