Latest Avalanche (AVAX) Price Analysis

By CMC AI
24 August 2025 04:00AM (UTC+0)

Why is AVAX’s price up today? (24/08/2025)

TLDR
Avalanche (AVAX) rose 3.99% over the past 24h, outpacing the broader crypto market’s +0.35% gain. Key drivers include:

  1. SkyBridge’s $300M tokenization – Institutional RWA adoption on Avalanche.
  2. Wyoming’s FRNT stablecoin – Multi-chain integration including Avalanche.
  3. Technical breakout – Bullish indicators signal momentum above $25.

Deep Dive

1. SkyBridge’s $300M Tokenization (Bullish Impact)

Overview:
SkyBridge Capital announced plans to tokenize $300M of its hedge funds on Avalanche, leveraging the blockchain’s speed and compliance-friendly architecture. This follows similar moves by BlackRock and Franklin Templeton, reinforcing AVAX’s position in institutional real-world asset (RWA) tokenization.

What this means:
Tokenization increases demand for AVAX as the settlement asset and validator stake. SkyBridge’s reputation (led by Anthony Scaramucci) adds credibility, attracting more institutions. Analysts estimate RWA tokenization could grow to $10T+ by 2030, positioning Avalanche as a key player.

What to watch:
Q4 2025 metrics for SkyBridge’s on-chain activity and subnet adoption.


2. Wyoming’s FRNT Stablecoin Integration (Mixed Impact)

Overview:
Wyoming launched the FRNT stablecoin on Avalanche, enabling instant Visa payments and cross-border remittances. This follows the GENIUS Act, which exempts state-backed stablecoins from federal oversight.

What this means:
Short-term bullish: FRNT’s integration with Rain’s Visa card on Avalanche could boost transactional volume. However, competition from Circle’s cross-chain USDC Gateway (also on Avalanche) may dilute exclusivity.

Key metric:
FRNT adoption rates on Avalanche vs. rival chains like Solana and Ethereum.


3. Technical Breakout Above $25 (Bullish Impact)

Overview:
AVAX broke past its 24.78 Fibonacci resistance (38.2% retracement level) with an RSI of 59.8, signaling room for upside. The MACD histogram turned positive (+0.098), confirming bullish momentum.

What this means:
Traders are targeting $27.31 (swing high) if AVAX holds above $25. However, failure to sustain this level could trigger a pullback to $23.99 (50% Fib support).


Conclusion

AVAX’s 24h rally reflects a mix of institutional adoption (SkyBridge), regulatory tailwinds (FRNT), and technical momentum. While RWA growth offers long-term upside, short-term volatility is likely as traders test $25–$27 resistance.

Key watch: Can AVAX hold above $25 with volume above $1.2B/day? A close above this level may validate bullish targets toward $30.

Why is AVAX’s price down today? (22/08/2025)

TLDR
Avalanche (AVAX) fell 0.23% over the last 24h, underperforming the broader crypto market (-0.24% vs. total market cap -0.24%). The decline aligns with fading momentum from recent bullish catalysts and technical resistance.

  1. Technical Rejection – Failed breakout attempts near $24.40 resistance
  2. Mixed Sentiment – Profit-taking after SkyBridge’s $300M tokenization news
  3. Altcoin Weakness – Bitcoin dominance rises to 58.65%, draining altcoin liquidity

Deep Dive

1. Technical Resistance (Bearish Impact)

Overview: AVAX faced repeated rejections near the $24.40 zone (cited in community analysis), with the price breaking below critical support at $23.50. Key indicators show bearish momentum:
- MACD histogram: -0.183 (bearish crossover)
- RSI-7: 43.28 (neutral-bearish territory)
- Fibonacci retracement: Current price ($23.13) below 23.6% level ($25.74)

What this means: The failed breakout triggered stop-loss orders and algorithmic selling. With the price below the 7-day SMA ($23.63), short-term traders are exiting positions.

2. Profit-Taking Post-Catalyst (Mixed Impact)

Overview: AVAX initially rallied 2.79% on August 20 after SkyBridge Capital’s $300M tokenization news, but gains reversed as investors locked in profits.

What this means: Institutional adoption news often creates “buy the rumor, sell the news” dynamics. The 24h trading volume dropped 0.17% to $487M, signaling reduced follow-through buying.

What to watch: Sustained demand for SkyBridge’s tokenized funds launching in September 2025.

3. Altcoin Liquidity Drain (Bearish Impact)

Overview: Bitcoin dominance rose to 58.65% (up 0.08% daily), while the Altcoin Season Index fell to 43/100. AVAX’s 24h performance (-0.23%) trailed major alts like ETH (-0.16%).

What this means: Traders are rotating into BTC amid neutral market sentiment (Fear & Greed Index: 46/100). AVAX’s 30-day correlation with BTC strengthened to 0.89, amplifying downside pressure.

Conclusion

AVAX’s dip reflects technical headwinds, post-catalyst profit-taking, and sector-wide altcoin weakness. While the SkyBridge partnership validates Avalanche’s RWA capabilities, short-term traders are prioritizing BTC exposure. Key watch: Whether AVAX holds the $22.10 Fibonacci support (78.6% retracement level) to prevent a deeper correction toward $20.68 (swing low).

CMC AI can make mistakes. Not financial advice.
AVAX
AvalancheAVAX
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$25.6

0.65% (1d)