AVAX Rallies 6% as Political Risk Subsides and Big-Money Inflows Pick Up

AVAX Leads Altcoin Rebound With 6% Gain as Ecosystem Growth and Technical Support Converge

Avalanche’s AVAX token posted a 6.1% gain over the last 24 hours, outperforming the broader altcoin market and the CoinDesk 20 Index, which rose a modest 0.8% in the same timeframe.

The rally follows a market dip earlier in the week, triggered by political tensions between President Trump and Elon Musk. As risk sentiment improved, AVAX rebounded from a low of $19.37 to $20.96, with price action supported by a key technical level and rising volume, according to CoinDesk Research’s trend model.

AVAX established a confirmed support zone around $19.40, with a breakout above $20 accompanied by volume exceeding its 24-hour simple moving average. Short-term resistance now sits at $21, while local support holds near $20.81.

Beyond technicals, Avalanche continues to benefit from ecosystem momentum:

FIFA announced it will migrate its NFT operations to Avalanche, abandoning earlier infrastructure on Algorand and Polygon. The move is expected to bring millions of users and new fan engagement tools to the Avalanche chain.
VanEck is preparing to launch a $100 million PurposeBuilt Fund, dedicated to Avalanche-native projects across DeFi, gaming, artificial intelligence, and real-world asset tokenization. Idle fund capital will be allocated to on-chain RWA strategies such as tokenized money markets.

Despite looming resistance at $24.80, AVAX’s fundamentals and technical structure suggest potential resilience through broader market uncertainty, especially if institutional inflows materialize as projected.