Avalanche rose 6% ─ tensions between President Trump and Musk eased, establishing momentum for institutional investors | CoinDesk JAPAN

• Avalanche has surged over 6% in the past 24 hours, showing better performance than the overall cryptocurrency market.
• The price rebound may be attributed to the tokenization of real assets, adoption by institutional investors, and the expansion of that technology.
• Avalanche has built strong support around $19.40 and broke through $20. Short-term resistance is around $21, and support is at $20.81.

The price of Avalanche may have risen due to a recovery from political instability and significant advancements in the tokenization of real-world assets (RWA) and adoption by institutional investors.

Avalanche rose from a low of $19.37 to $20.96. This week, it recovered from a market-wide sell-off triggered by escalating tensions between President Donald Trump and Tesla CEO Elon Musk. President Trump threatened to terminate government contracts with Musk, who retaliated by accusing Trump of being involved with Jeffrey Epstein's files.

According to the technical analysis data model from CoinDesk's research department, Avalanche rebounded after showing multiple signs of bullish momentum. Avalanche has built a strong base around $19.40, which is supported by trading volume exceeding the 24-hour simple moving average.

When Avalanche broke through the $20 mark, the trading volume increased further, indicating the strength of this movement. According to this model, Avalanche is currently forming short-term resistance around $21 and support at $20.81.

However, this rebound, which exceeds the average, may not be solely due to technical factors. Last month, FIFA (Fédération Internationale de Football Association) selected Avalanche as the foundation for its blockchain network. They are planning to migrate existing NFT collections from Algorand and Polygon to the new network, aiming to build a new fan experience.

Institutional investors' momentum has further supported this movement. Asset management company VanEck is set to launch the PurposeBuilt Fund, which was first announced on May 21, with a scale of 100 million dollars (approximately 14.5 billion yen, based on 145 yen per dollar) within this month. This fund focuses exclusively on projects within the Avalanche ecosystem.

This fund supports tokens and businesses in the gaming, finance, and AI sectors, while also channeling idle funds into on-chain real-world asset (RWA) products such as tokenized money markets.

The price of Avalanche continues to face technical resistance around $24.80, but due to the combination of institutional investor activity, an increase in on-chain RWA, and network usage by prominent partners such as FIFA, Avalanche may continue to outperform the overall market volatility throughout June.

|Translation & Editing: Rina Hayashi | Image: Nicolas Cool/Unsplash
|Original: AVAX Jumps 6% as Trump-Musk Tensions Fade and Institutional Momentum Builds