Avalanche Price Prediction as VancEck Makes Major AVAX ETF Update

Avalanche price rose moderately in the past few days, aligning with the performance of other altcoins that have rebounded after their recent crash. AVAX price also rose after VanEck made its remaining ETF filings with the Securities and Exchange Commission (SEC).

Avalanche Price Rises as VanEck Sends Update on Its AVAX ETF Filing

VanEck, a financial services company with over $139 billion in assets under management (AUM), could become the first company to launch an AVAX ETF.

The company made its final filings with the SEC, providing additional details about the VAVX ETF. Its filing provided more details about the fund, including its fees and the custodians, who will be Coinbase and Anchorage Digital.

The next step will be a full review by the Securities and Exchange Commission (SEC) and then the launch. It could likely happen in December.

Other companies, such as Bitwise and Grayscale, have filed for spot AVAX ETFs, which may be approved in the coming weeks or months.

Once approved, these funds will make it possible for American retail and institutional investors to allocate money in Avalanche and benefit from its uptrend and its staking rewards.

Data compiled by StakingRewards shows that AVAX has a staking reward of 7.5%. It is higher than what government and corporate bonds are offering.

The most recent data shows that there is an appetite for altcoin ETFs, especially for those with substantial utility.

Data compiled by SoSoValue shows that spot XRP ETFs have had a cumulative inflow of $643 million since their launch on November 13. Canary’s XRP ETF has already accumulated over $336 million in assets.

Similarly, Solana ETFs have accumulated over $613 million in inflows, while the Canary Hedera ETF has over $79 million in assets.

Avalanche is Seeing Robust Ecosystem and Network Growth

The VanEck AVAX ETF filing is coming at a time when Avalanche’s network is seeing robust growth in some areas.

For example, Nansen data shows that Avalanche has emerged as one of the fastest-growing networks in the crypto industry. Its transactions grew by 31% in the last 30 days to 61.3 million. In contrast, Stellar, Ethereum, and Algorand experienced a decline in transactions during this period.

The total value locked (TVL) in Avalanche’s network has continued to rise in the past few years. It increased from 32.36 million AVAX to 133 million AVAX tokens today.

Additionally, there are signs that Avalanche is benefiting from the GENIUS Act. The amount of stablecoins in circulation in the network has jumped to close to $2 billion today from the year-to-date low of $1.2 billion.

Most importantly, Avalanche is one of the top networks that is winning in the Real-World Asset (RWA) tokenization industry. Data compiled by RWA shows that the total value locked in its RWA ecosystem has jumped to over $700 million, making it the fifth-biggest player in the industry.

Avalanche has also continued to burn AVAX tokens, a move aimed at reducing its inflation rate. Data shows that over 4.95 million AVAX tokens worth over $74 million have been burned over time.

AVAX Price Technical Analysis

The main risk to Avalanche price is in its technicals. The weekly timeframe chart shows that the AVAX price has been in a strong downward trend in the past two years. It has plunged from $65 in March last year to $14 today.

Consequently, AVAX price has dropped below the 50-week and 100-week Exponential Moving Averages (EMA). It indicates that the bearish momentum is accelerating.

Worse, the token has formed a descending triangle pattern whose lower side is at $17.5. Moreover, the descending trendline connects the highest swings in March and November last year, and September this year.

Therefore, the most likely AVAX price forecast is bearish despite the upcoming ETF launch. This means that it may keep falling as sellers target the next key support level at $10, followed by the 2023 low of $8.64.