Avalanche’s native token AVAX is undergoing a short-term price correction after testing the $27 resistance level, retreating to trade around $25. This pullback coincides with bearish relative strength index (RSI) divergence, signaling potential near-term momentum weakening.
Despite this correction, AVAX’s broader bullish trend remains firmly supported by technical indicators. The recent crossover of the 20-day exponential moving average above the 50-day simple moving average reinforces positive momentum, establishing this technical pattern as a key support level during price dips.
Institutional adoption continues to bolster Avalanche’s long-term growth trajectory. Grove Finance’s deployment of $250 million into real-world asset (RWA) tokenization on the Avalanche blockchain highlights increasing institutional confidence. This positions Avalanche as a leading enterprise platform for RWA solutions, hosting prominent tokenized assets including BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and Franklin Templeton’s OnChain U.S. Government Money Fund (BENJI).
The convergence of technical strength and expanding institutional use cases provides fundamental support for Avalanche’s ecosystem, indicating sustained upward potential despite transient market fluctuations.