Avalanche price compresses near $12 as AVAX ETF launches

Avalanche price is hovering near the $12 mark just as its first U.S.-listed exchange-traded fund goes live, setting up a tense moment where price compression meets a major institutional catalyst.

Avalanche was trading at $11.76 at press time, up 1.5% over the past 24 hours. The token has moved within a $11.30–$12.73 range over the last seven days, though it is still down about 8% over the past month and nearly 66% on a year-over-year basis.

Despite the modest daily bounce, activity has cooled. Avalanche’s (AVAX) 24-hour trading volume fell 16% to roughly $272 million, pointing to lighter spot participation as price compresses near support.

Derivatives paint a mixed picture. CoinGlass data shows futures volume down nearly 20% to $539 million, while open interest climbed 11% to $495 million. This pattern shows traders opening new positions even as turnover slows, which could drive a sharper move once the price breaks its range.

AVAX ETF goes live

The first Avalanche ETF to be listed in the U.S. was launched by VanEck on Jan. 26, trading on Nasdaq under the ticker VAVX. To draw early inflows, VanEck waived fees on the first $500 million in assets until late February. The product offers direct exposure to the price of AVAX and includes staking rewards.

For AVAX, the ETF changes the access equation. Exposure through traditional brokerage accounts removes the need for wallets or crypto exchanges, opening the door to institutions and conservative retail capital.

In addition, the fund may stake up to 70% of its AVAX holdings, which could lock a meaningful portion of supply and reduce tokens available on the open market if demand holds up.

Network usage has been improving according to on-chain metrics. While integrations like PayPal USD via LayerZero (ZRO) continue to increase practical utility, Avalanche has surpassed 1.38 million active addresses.

These developments, when combined with the ETF, provide a stronger fundamental backdrop than price alone might imply.

Avalanche price technical analysis

From a technical perspective, AVAX is tightening around the $11.50–$12.00 support zone, an area that has repeatedly drawn buyers. The narrowing of daily ranges indicates compression of volatility.

The price is still below declining moving averages that are clustered between $13.00 and $13.20, and the overall trend is still sloping downward with lower highs and lows.

Following the recent sell-off, Bollinger Bands are narrowing, which often precedes a stronger directional move. Momentum indicators lean weak but steadier than before, with the relative strength index holding in the mid-40s and no fresh acceleration to the downside.

If $11.50 gives way on a daily close, downside risk extends toward the $10.00 psychological level. On the flip side, a clean push above $13.00 could force short covering and allow the price to stretch toward the $14.80–$15.00 area, where the next resistance zone sits.