Avalanche ( AVAX ) accelerates with expectations of ETF and booming DEX trading.

Avalanche (AVAX) recorded a slight fall of 1% on Tuesday, continuing to hover around the psychological level of 30 USD. However, the market is sparking hope as Bitwise takes final steps to launch a spot ETF for AVAX, after having submitted an S-1 application to the Securities and Exchange Commission of America (SEC). Alongside this, on-chain data and technical indicators are all signaling optimism, reinforcing confidence in the potential for a strong breakout to appear soon.

Bitwise files for AVAX ETF

Bitwise just submitted an S-1 filing to the SEC on Monday, marking a new step in the strategy to expand its cryptocurrency ETF portfolio with a product focused on Avalanche. This move brings Bitwise into the AVAX ETF race alongside major players like VanEck, 21Shares, and Grayscale. The launch of this altcoin fund is expected to catch up with the increasing demand from American investors, while also opening up potential growth opportunities similar to Bitcoin and Ethereum.

Activities in the Avalanche ecosystem increase

According to data from DeFiLlama, the Total Value Locked (TVL) in the Avalanche ecosystem has reached 2.09 billion USD, up from 1.925 billion USD last week. This figure reflects a significant expansion of the flow of digital assets allocated across the network.

Notably, the trading volume on decentralized exchanges (DEX) has remained above 2 billion USD for eight consecutive weeks, while the market capitalization of stablecoins has also recorded an increase of nearly 5%, rising to 2.31 billion USD. The simultaneous improvement in liquidity and market activity could become an important driving force, increasing the demand for the AVAX token.

Avalanche DeFi data | Source: DeFiLlama## Avalanche aims to break the 30 USD milestone

AVAX continues to struggle to close decisively above the mark of 30.37 USD – corresponding to the Fibonacci retracement level of 38.2% from the peak of 55.79 USD ( on 4/12) to the bottom of 14.66 USD ( on 7/4). The submission of the Bitwise application for approval of the Avalanche ETF seems to have not created a clear impetus for investor sentiment, especially when short-term adjustment pressure is becoming increasingly evident.

If it surpasses the mark of 30.37 USD, AVAX could extend its upward momentum, aiming for the 50% Fibonacci retracement level at 35.22 USD. CoinGlass data records that the open contract (OI) of AVAX has slightly increased to 1.36 billion USD, reflecting new capital entering the market in anticipation of higher profits.

Notably, the average funding rate according to OI has also increased from 0.0064% on Monday to 0.0121%, indicating active buying as the bulls are willing to pay fees to maintain a balance between futures prices and spot prices.

Derivatives data of AVAX | Source: CoinGlassOn the daily chart, the Relative Strength Index (RSI) has pulled back from the overbought zone to 64, reflecting a cooling in buying pressure. However, the RSI remains above the neutral threshold, maintaining an advantage for the bullish trend. Alongside, the MACD indicator is still above the signal line, continuing to reinforce the positive outlook.

On the contrary, if the correction pressure increases, AVAX may fall back to test the 50-day EMA at 25.13 USD.

Daily AVAX/USDT chart | Source: TradingViewSN_Nour