Key Insights
- •AVAX retraces to the $12.96 golden zone, a critical technical level attracting significant trader attention.
- •Bitwise plans to launch a U.S. AVAX ETF that will include staking, offering potential yields and competitive fees.
- •Traders are closely monitoring the $15.71 breakout level as AVAX price structure forms at a key Fibonacci support zone.
Avalanche (AVAX) has experienced a sharp retracement following a strong rally earlier this month, returning to its previous support zone. The current price of AVAX stands at $12.96, marking a 7.89% decrease over the last 24 hours. Trading volume during this period was $446.9 million, indicating active market participation despite the price decline.
AVAX Tests the 0.618 Fibonacci Level After Recent Pullback
AVAX experienced a significant surge earlier this month, driven by a clear technical setup that propelled the price upward. Short-term traders have since taken profits at the recent peak. Consequently, the price has almost completed a full round trip, retracing back to the 0.618 Fibonacci level.
This Fibonacci retracement zone is widely recognized as an important area in technical analysis, frequently used by traders to identify potential bounce points or reversals. The $12.96 level has now become a focal point for buyers, with many observing for signs of support that could facilitate a price increase towards the $15.71 level.
CryptoPulse has noted that this level "often acts like a springboard," referencing historical market behavior observed near this price point. The firm has advised traders to closely observe how the price structure develops from this level and to formulate their next moves before any potential breakout occurs.
Bitwise Files for AVAX ETF With Staking Yields
Bitwise Asset Management has submitted a filing to update its Avalanche ETF, which will trade under the ticker BAVA. The firm's objective is to make this the first cryptocurrency ETF in the United States to offer staking rewards directly to its investors.
According to the filing, the fund intends to stake up to 70% of its AVAX holdings. Investors will be eligible to receive staking rewards after a 12% operational fee is deducted. This proposed update is expected to attract income-focused investors seeking yield-generating cryptocurrency products.
The ETF is slated to charge an annual fee of 0.34%, which is lower than the fees charged by competing products such as VanEck's 0.40% and Grayscale's 0.50%. Bitwise has stated that BAVA "would be the lowest-cost fund in the space" when compared to other products that do not offer staking capabilities.
CryptoPulse has also commented that if the AVAX price demonstrates signs of strength and begins to establish a base, this could indicate a new buying opportunity for investors.
AVAX Price Movement Could Set Up New Trading Opportunities
The current price action surrounding the golden Fibonacci zone is generating considerable interest from both retail and institutional traders. Many are keenly observing whether AVAX can sustain its position at this level and commence forming a bullish price structure.
Traders are being advised to carefully plan their strategies in advance and monitor the developing setup with diligence. The recent confluence of price movements, the significant ETF news, and the presence of strong technical support levels has created a situation that could potentially lead to another upward breakout.
With the impending update to Bitwise's ETF and the established technical support at play, AVAX is likely to remain a focal point of attention in the cryptocurrency market in the near future.