How High Could AVAX Price Go If an Avalanche ETF Is Approved?

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As a seasoned researcher with years of experience analyzing the cryptocurrency market, I have seen my fair share of bull runs and bear markets. The potential approval of an Avalanche (AVAX) ETF has certainly piqued my interest, as it could potentially catapult this promising blockchain into the limelight.

Discussion about Avalanche (AVAX) price has been prevalent since the start of the week due to the potential approval of an Avalanche ETF. This prospect has ignited interest among investors, as the blockchain’s rapidly expanding ecosystem captures attention. Recent events, like AVAX being added to the Grayscale Digital Large Cap Fund, suggest ETF possibilities. While not guaranteed for AVAX, this move represents a significant step forward for the cryptocurrency, potentially leading to increased visibility and price. How high could AVAX climb if an ETF is approved?

AVAX Price If An Avalanche ETF Is Approved

The decision by Grayscale might lead to a surge in Avalanche’s cost as institutional investors show increased interest, owing to potential demand from this group. Furthermore, since the Digital Large Cap Fund encompasses BTC, ETH, SOL, XRP, and AVAX, any inflow into the ETF has the effect of linking the price fluctuations of these assets. This means that a net flow into the ETF could cause an increase in the prices of all four assets.

The Avalanche price is trading at $27.75, down 2.6% in the last 24 hours. The asset did not react the same way the LTC price did following the news of the Litecoin ETF application. 

How High Could AVAX Price Go If an Avalanche ETF Is Approved?

To gain insights into possible AVAX price movements post ETF approval, let’s examine the reactions of Bitcoin and Ethereum prices after their respective ETF approvals.

On January 10, when the U.S. Securities and Exchange Commission (SEC) gave its nod to a Bitcoin (BTC) exchange-traded fund (ETF), the BTC price surged by 5%. However, this surge was followed by a dip as investors cashed in on the news. Nevertheless, the asset saw an eventual increase of 57%, peaking at $73,000. As of October 16, the BTC is being traded at $66,000, marking a rise of 33% since the ETF approval was announced.

Compared to Bitcoin, Ethereum’s price growth didn’t meet expectations following its ETF approval. In just two days after the approval, Ethereum saw a 21% increase, getting close to $4,000. But the price movement over the subsequent months was quite dull.

As a crypto investor, I’m always keeping an eye on the performance of Bitcoin (BTC) and Ethereum (ETH) as benchmarks. Given that Bitcoin’s market cap is 109 times larger than Avalanche’s (AVAX), and Ethereum’s is 28 times bigger, it’s intriguing to consider what AVAX could potentially achieve if it mirrored their growth. Theoretically, its price could soar to around $2,943 and $756 respectively. However, taking into account the differences in trading volume, more reasonable targets for Avalanche might be $440 and $231.

Avalanche Price Analysis: $440 Is a Dream, But $160 Is A Reality

Based on AVAX’s current market analysis, it appears that the asset has been consolidating after a long period of decline, currently hovering near a Fibonacci retracement zone, specifically around the 0.786 Fib level (approximately $23). The recent price movements suggest a potential bottom formation, as several weekly candles have found support within the $20 to $30 range. This implies a possible change in trend direction.

How High Could AVAX Price Go If an Avalanche ETF Is Approved?

Initially, the projected first hurdle for the AVAX price rise lies around the 0.27 Fibonacci extension level, approximately $74. Subsequent potential peaks can be found at $110 and $165 as the AVAX price strives to re-establish higher positions.

For a while, if we surpass $34 in the near future, it will signal a bullish turnaround. Our initial short-term goal then lies between $62 and $74.

How High Could AVAX Price Go If an Avalanche ETF Is Approved?

There’s significant backing at approximately $23, which corresponds to the 0.786 Fibonacci retracement level. This level has often served as a turning point after lengthy corrections in the past. If the bearish sentiment for AVAX intensifies and drives the price below the 0.786 Fibonacci levels (around $23), it could indicate market vulnerability, making the overall situation bearish. The Avalanche price may then find stabilization around $16, $11, or even $8.

Can AVAX ETF Boost Avalanche

If an ETF that includes Avalanche (AVAX) gets approved, it might significantly increase the value of AVAX. However, the exact effect will hinge on different factors like market fluctuations, trading activity, and investor interest. Precedents from Bitcoin and Ethereum’s ETF approvals hint at possible considerable growth for AVAX, with estimated price goals reaching as high as $440 in a favorable outlook, with a more conservative estimate of around $160.

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2024-10-16 10:48