Avalanche's AVAX Token Surges 6% Amid Institutional Backing

Avalanche’s native token, AVAX, experienced a significant surge, jumping more than 6% in the last 24 hours. This increase outpaced the broader crypto market, as indicated by the CoinDesk 20 (CD20) index, which rose by 0.8% during the same period. The price of AVAX climbed from a low of $19.37 to $20.96, recovering from a wider market sell-off triggered by growing tensions between U.S. President Donald Trump and Tesla CEO Elon Musk earlier in the week. The political jitters saw Trump threaten to terminate government contracts for Musk, who in turn accused the president of being implicated in the Jeffrey Epstein files.

The token's rebound was supported by multiple signs of bullish momentum, according to technical analysis data. AVAX established a strong footing around $19.40, confirmed by volume exceeding the 24-hour simple moving average. Volume further rose around the time of AVAX’s breakout past the $20 mark, showing strength in the move. The token has now formed short-term resistance near $21 and support at $20.81.

The stronger-than-average rebound may not just be technical. Last month, FIFA announced its choice of Avalanche to power its FIFA blockchain network. The plans include migrating its existing non-fungible token (NFT) collection from Algorand and Polygon into the new network and building out new fan experiences. Institutional momentum added another leg to the surge. Asset manager VanEck is expected to roll out a $100 million PurposeBuilt Fund this month, focused exclusively on projects within the Avalanche ecosystem. The fund will back tokens and businesses in gaming, finance, and AI, while deploying idle capital into on-chain real-world asset products like tokenized money markets.

The price of AVAX still faces technical resistance near $24.80, but the combination of institutional activity, on-chain real-world asset growth, and network usage from high-profile partners like FIFA could help AVAX stay ahead of broader market volatility through June. The surge in AVAX's price reflects a broader trend of institutional adoption and real-world asset tokenization within the Avalanche ecosystem, positioning it as a strong contender in the crypto market.