- AVAX jumped +10% in 24 hours, effectively erasing early August losses.
- Recent updates from Grayscale and Franklin Templeton could have boosted the rally.
Avalanche [AVAX] jumped 10% on the 22nd of August, coming in second amongst top daily gainers on CoinMarketCap.
The latest upswing extended AVAX’s recovery gains to 30%, tipping it to reclaim $25 and effectively erase all early August losses.
Source: AVAX/USDT, TradingView
AVAX could even go for more gains. There was room for further upside potential because the RSI (Relative Strength Index) was not overheated (not in overbought territory).
With Bitcoin [BTC] remaining range-bound, what was the catalyst behind AVAX’s massive upswing on Thursday?
Did Grayscale and Franklin Templeton boost AVAX?
AVAX’s rally coincided with two major updates on the Avalanche network. First, Grayscale added AVAX to its crypto products with a single crypto trust—Grayscale Avalanche Trust ($AVAX).
According to Grayscale’s Head of Product and Research, Rayhaneh Sharif-Askary, the chain’s impact on RWA (Real-World Assets) tokenization led to the inclusion of AVAX in its products.
“Through its key strategic partnerships and unique, multi-chain structure, Avalanche is playing a pivotal role in the advancement of RWA tokenization.”
Indeed, Avalanche’s RWA segment has begun to spike, with the latest player being Franklin Templeton’s tokenized US Treasury expanding to the chain.
The above positive updates could have boosted the wild extended recovery and successful reversal of all August losses.
The altcoin also massive spike in positive sentiment, hitting a yearly high as the price trended higher.
Source: Santiment
This suggested that the recent updates boosted the speculators’ outlook on the altcoin. If the bulls continue, the $30 level could be the next target.
The positive outlook was further supported by AVAX reclaiming $25, which was a key support level in June and July. So, a resolved defense of the support could tip AVAX to eye $30.
Reacting to the Grayscale’s move on AVAX, Ava Labs president, John Wu, said that the update was a ‘huge milestone.’
“Grayscale launching an Avalanche trust is a huge milestone for the ecosystem.”
