AVAX Eyes $15.70 Target to Spark Rally Amidst Deeper Pullback

Avalanche's AVAX token is testing trader nerves—but one key level could flip the script.

The cryptocurrency has carved out a steeper correction than many anticipated, shaking out latecomers and testing the resolve of long-term holders. Market chatter now centers on whether this is a healthy consolidation or the start of a more prolonged downturn.

The Bull Case: The $15.70 Line in the Sand

Technical analysts are laser-focused on the $15.70 price point. History shows this zone has acted as a springboard before, transforming from resistance into robust support. A decisive reclaim here isn't just a number on a chart—it's the potential trigger for renewed bullish momentum.

Market mechanics suggest that hitting this target could force a cascade of short positions to cover, creating the classic 'squeeze' that propels prices higher. It's the kind of move that turns cautious optimism back into full-throated FOMO.

The Bearish Reality Check

Of course, the crypto markets have a PhD in humbling the overconfident. Failure to hold critical support opens the door to a deeper retracement, where the next major floor might not emerge until significantly lower levels. It's the perpetual tug-of-war between narrative and liquidity.

Every major rally needs a shakeout—a moment where the 'weak hands' sell to the steadfast. Whether AVAX is currently in that phase or signaling a broader trend reversal is the multi-million dollar question. After all, in traditional finance, they call this 'volatility'; in crypto, we call it Tuesday.

The path forward hinges on that $15.70 target. Capture it, and the rally narrative gets fresh oxygen. Lose it, and traders might be in for a longer wait—proving once again that in the hunt for gains, the market's favorite pastime is proving most predictions wrong.

RSI and MACD Show Early Stabilization

The RSI NEAR support would likely sit around, showing fading bearish momentum as price taps the 0.618 retracement. An uptick from this zone usually signals that sellers are weakening. A push back abovewould confirm strengthening bullish momentum and support the idea of a reversal bounce.

In this pullback, the MACD index would normally present a negative histogram in the range of -0.04 and -0.07, showing less bearish force. If this histogram starts to compress towards zero and MACD attempts a crossover above the signal line, especially around -0.01, it will be an additional confirmation of an upward continuation.

Bitwise Prepares Staking-Enabled AVAX ETF Launch

Bitwise has launched an update to its Avalanche ETF (Ticker: BAVA), making it the first US crypto fund that provides staking rewards, and this is quite an advancement in income-generating crypto ETFs. However, this fund aims to stake as much as 70% of its Avax and share the rewards after charging an operation fee of 12% of the earnings.

With a management fee of just 0.34%, it undercuts competitors like VanEck (0.40%) and Grayscale (0.50%), while those products currently offer no yield, giving BAVA a strong advantage for investors seeking real on-chain returns.

BITWISE FILES $AVAX ETF WITH STAKING YIELDS

Bitwise is updating its Avalanche ETF (ticker: $BAVA ) to become the first U.S. crypto fund offering staking yields. Key points:

– Stake up to 70% of $AVAX holdings to generate rewards for investors.
– Lowest-cost fund in the… pic.twitter.com/K3VvbbpvK8

Set to launch in Q1 2026 on NYSE Arca, BAVA could become a significant catalyst for Avalanche by channeling institutional capital into staked AVAX. Even more importantly, it represents the next generation of crypto ETFs that aim to MOVE beyond passive investment products and towards those that are yield-generating and are aligned with the blockchain ecosystem.