Avalanche’s native token, AVAX, has been making waves in the cryptocurrency market, with a notable 10% increase on Tuesday amidst a broader market downturn. This surge has been fueled by various initiatives from the Avalanche Treasury, which have contributed to the token’s growing institutional appeal. As of the current price, AVAX has risen by 21.5% from its local low of $29, signaling renewed trust in the token.
The Avalanche Foundation has taken significant steps to bolster AVAX’s institutional attraction. In early September, the non-profit organization announced plans to raise $1 billion from two US crypto finance ministries to acquire millions of AVAX tokens at reduced prices from the foundation’s reserves. This move has been followed by other notable developments, including the renaming of Agriforce Growth Systems to AVAX One, with plans to raise $550 million to build a treasury focused on AVAX.
Positive Fundamentals Drive AVAX Price
The increased institutional interest in AVAX has been a key driver of its price growth. The introduction of a Crypto Exchange-Traded Product (ETP) by Swedish asset manager Vitune, which exposes Finnish investors to AVAX, has been a significant factor. Additionally, the application by global investment company Vaneck for an Avalanche-traded fund (ETF) and the submission by Grayscale to convert its existing Avalanche trust to an ETF have further contributed to the token’s growing appeal.
These developments have not only increased demand for AVAX but also created a sustainable purchase pressure and liquidity. As a result, the token’s price has been on an upward trajectory, with a potential short-term goal of $55 and a long-term goal of $212.
Avalanche On-Chain Activity Supports AVAX Price
The Avalanche ecosystem has experienced significant growth in 2025, driven by technical upgrades and the expansion of its DeFi applications. The Octane upgrade in April reduced C-Chain fees by 98%, leading to a 493% quarterly increase in daily transactions and a 57% increase in active addresses. The total value locked (TVL) in Avalanche has also doubled to $2.23 billion, with the market capitalization of stablecoins rising to $2.16 billion, representing an 81% increase in the last 30 days.
The growth in TVL and stablecoin market capitalization signals increasing adoption and network usage, which in turn increases liquidity and the potential for higher AVAX prices. The daily transaction number on the Avalanche network has also remained high, with over 1.2 million transactions per day, according to data from Nansen.
AVAX Price Chart: Rounded Bottom Pattern
The daily chart of AVAX shows the formation of a rounded bottom pattern, a classic accumulation and bullish reversal formation after a long consolidation. The price has followed a gentle U-shaped base since the lows in July near $17, with a significant increase in trading volume and a jump of 17% from the Monday low of $29. This setup creates two bullish targets for AVAX: a return to the $55 level, representing a 61% increase from the current price, and a potential rally to $212, representing a 511% increase.
However, it is essential to note that the relative strength index (RSI) is approaching the “overbought” threshold, which has preceded significant price corrections in the past. As such, bulls should exercise caution and not overlook potential resistance levels, including the immediate resistance at $36 and the psychological level of $40.
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