AVAX Climbs 6% as Political Risk Fades, Institutional Catalysts Drive Upside Momentum
Avalanche’s AVAX token rose over 6% in the past 24 hours, sharply outperforming the broader crypto market, with the CoinDesk 20 Index gaining just 0.8% over the same period.
The recovery follows earlier downside pressure linked to political friction between President Donald Trump and Elon Musk, which had sparked a brief market correction earlier in the week. AVAX rebounded from $19.37 to $20.96, helped by a strong technical base around $19.40 and rising volume, according to CoinDesk Research’s model.
The breakout above $20 was accompanied by increased trading activity, with technical indicators now pointing to near-term resistance at $21 and support at $20.81.
Fundamentals also improved, with two key developments driving sentiment:
- FIFA selected Avalanche to host its official blockchain ecosystem, migrating NFT collections from Algorand and Polygon and signaling confidence in Avalanche’s infrastructure for high-profile applications.
- VanEck’s $100M Avalanche-dedicated PurposeBuilt Fund is expected to launch this month, targeting projects in DeFi, gaming, AI, and on-chain real-world asset (RWA) products. The fund could accelerate capital flow into the ecosystem.
While AVAX remains capped by longer-term resistance near $24.80, the combination of institutional momentum, real-world partnerships, and positive technical structure may support continued outperformance through June.
