Avalanche's native token, AVAX, surged more than 6% in the last 24 hours, significantly outperforming the broader crypto market as measured by the CoinDesk 20 index, which rose by only 0.8% during the same period. The price recovery followed a sharp sell-off triggered by escalating tensions between U.S. President Donald Trump and Tesla CEO Elon Musk, which caused AVAX to dip to a low of $18.48 before rebounding.
The rebound is credited to both technical factors and positive fundamental developments. Technical analysis showed bullish momentum with AVAX establishing strong support levels around $19.40 and rising volume confirming the breakout past the $20 mark. Resistance now holds near $21, with additional technical resistance near $24.80.
Fundamentally, the token’s strength is supported by growing institutional interest and ecosystem developments. Notably, FIFA chose Avalanche to power its blockchain network, planning to migrate its NFT collections from other blockchains and develop fan experiences on Avalanche. Moreover, asset manager VanEck is set to launch a $100 million fund dedicated exclusively to projects within the Avalanche ecosystem, targeting sectors such as gaming, finance, and artificial intelligence, while investing in tokenized real-world asset products.
This combination of institutional momentum, growing real-world asset tokenization, high-profile partnerships, and technical strength could allow AVAX to outperform broader market volatility through June.