AVAX eyes $12.3 as Grayscale launches the Avalanche staking ETF

Avalanche (AVAX) is up by nearly 4% in the last 24 hours and is now trading around $10.

The positive performance comes as Bitcoin, Ether, and XRP also recorded gains during that period.

Furthermore, Grayscale launched its Avalanche Staking ETF, allowing investors to gain exposure to AVAX while also enabling participation in the network’s staking process.

The derivatives data support a bullish bias as AVAX targets a new monthly high above the $12 psychological level. 

Grayscale launches its GAVA ETF

Grayscale, one of the leading digital asset investment firms, announced on Thursday that it has launched the Grayscale Avalanche Staking ETF on the NASDAQ stock exchange. 

According to the team, Grayscale Avalanche Staking ETF (Ticker: GAVA) seeks to provide exposure to AVAX, the native token of the Avalanche network, while also enabling participation in the network’s staking process. 

By leveraging Avalanche’s staking feature, GAVA may earn rewards associated with participation in the network.

Grayscale added that by incorporating staking into its investment strategy, GAVA aims to provide investors with exposure not only to the price performance of AVAX, but also to the economic activity associated with network participation.

While commenting on the launch, Inkoo Kang, Senior Vice President, ETFs, at Grayscale, said,

“GAVA complements our existing suite of more than 40 digital asset products and provides investors with the ability to gain exposure to one of the market’s leading smart contract platforms, supported by Grayscale’s scale, research, and infrastructure. By integrating staking into the Fund’s strategy, GAVA also enables investors to access the potential economic benefits of participating in Avalanche’s Proof of Stake network through an ETP structure.”

In addition to this, AVAX’s derivatives data support a bullish outlook.

The futures Open Interest (OI) now reads $462 million, up from the $404 million recorded on Thursday.

The long-to-short ratio has crossed the 1 mark and reads 1.087, indicating that the longs are paying the shorts.

The metric surpassing one suggests that the bulls are now in control of the market. 

Finally, the funding rate on Avalanche (AVAX) turned positive on Thursday and now reads 0.0018%.

The metric flipping positive indicates a growing bullish bias among traders. 

AVAX overcomes the $9.83 resistance, eyes higher levels

The AVAX/USD 4-hour chart is bearish and efficient despite Avalanche adding 4% to its value since Thursday.

The momentum indicators have flipped positive, indicating a near-term bullish bias.

At press time, AVAX is trading at $9.99 after overcoming the $9.83 resistance level a few hours ago.

If the rally persists, AVAX could take out the 4-hour Inducement Liquidity (ILQ) at $10.32 over the next few hours.

An extended rally would bring the Transactional Liquidity (TLQ) of $11.06 into focus.

The TLQ contains a large number of sell orders, and breaking above it would allow the bulls to target the $12.3 swing high.

However, if the rally stalls, AVAX may retest the Monday low of $8.74.

The RSI of 68 and the MACD lines all indicate that the buyers are currently in control of the market.