Avalanche (AVAX) Price Holds Above $34 as Institutional Demand Fuels Rally Despite Overbought Risks

Avalanche (AVAX) continues to demonstrate resilience against the broader crypto market downturn, trading above $34 after a sharp recovery.

While Bitcoin struggles below $112,000 and Ethereum hovers near $4,000, AVAX has gained over 17% in the past week and 32% in the past month. The token’s rally has been accompanied by a 200% surge in trading volumes, highlighting increased activity from both retail and institutional players.

Spot trading volume reached $2.62 billion in the last 24 hours, while derivatives open interest climbed 18% to $1.77 billion, according to CoinGlass. Rising leverage positions point to aggressive bullish sentiment, though such setups can often trigger sharp corrections if momentum stalls.

Institutional Backing Strengthens Avalanche’s Outlook

Institutional adoption is emerging as the key driver behind AVAX’s surge. On September 22, AgriFORCE Growing Systems announced its rebrand to AVAX One, becoming the first Nasdaq-listed company dedicated to building a treasury of Avalanche tokens.

Backed by Hivemind Capital and over 50 major investors, including Galaxy Digital, Kraken, and Digital Currency Group, the firm plans to raise $550 million with a long-term target of $700 million in AVAX holdings.

Notably, SkyBridge Capital’s Anthony Scaramucci has joined as an advisor, signaling Wall Street’s growing interest in Avalanche’s ecosystem. The move echoes strategies seen in earlier Bitcoin corporate treasuries, but with a unique focus on asset tokenization—a use case where Avalanche is increasingly seen as a “Swiss Army knife” blockchain for institutions.

Whale activity further underscores market confidence. Blockchain data shows one trader opening a $17 million leveraged long position, while another associated with World Liberty Financial bet $2.2 million at 10x leverage. Such moves highlight deep-pocketed conviction, even as technical signals flash caution.

Technical Analysis: Bulls in Control, But Pullback Risks Loom

From a technical perspective, AVAX is testing resistance near $36.80, the upper band of its Bollinger channel. The Relative Strength Index (RSI) stands at 70.7, placing the token in overbought territory, while stochastic oscillators also suggest short-term exhaustion.

Despite these warnings, AVAX’s overall trend remains bullish. All major moving averages, ranging from the 10-day EMA to the 200-day SMA, are signaling buy conditions, and the MACD remains firmly positive.

If momentum persists, a breakout above $36.80 could open the path toward $38 and possibly $40. However, should selling pressure mount, immediate support lies at $32.40, with stronger backing at $29.50.