AVAX Soars 6% as Trump-Musk Conflicts Diminish and Institutional Support Grows

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<img src="https://cdn.sanity.io/images/s3y3vcno/production/46e29cc18d8acce11d54f26234247514ac5ee6a0-1920x1165.jpg?auto=format&amp;w=1920&amp;h=1080&amp;crop=focalpoint&amp;fit=clip" /><br>Avalanche’s native token AVAX surged more than 6% in the last 24 hours, outpacing the broader crypto market as measured by the CoinDesk 20 (CD20) index, which rose 0.8% in the same period. AVAX’s price may have rebounded from political jitters and moved on the back of major developments in real-world asset (RWA) tokenization and institutional adoption. The token 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 this week, which saw the former threaten to terminate government contracts for the latter, who in turn accused the president of being implicated in the Jeffrey Epstein files.

The token rebounded after showing multiple signs of bullish momentum, according to technical analysis data. This data indicates that 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, demonstrating strength in the move. The token has now formed short-term resistance near $21 and support at $20.81.

Additionally, the rebound may not be solely technical. Last month, FIFA announced it chose Avalanche to power its blockchain network, with plans to migrate its existing non-fungible token (NFT) collection from other platforms into the new network and build out new fan experiences. 

Institutional momentum has also played a significant role. Asset manager VanEck is expected to launch a $100 million PurposeBuilt Fund this month, focused exclusively on projects within the Avalanche ecosystem. This fund will support tokens and businesses in gaming, finance, and AI, while investing idle capital into on-chain real-world asset products like tokenized money markets.

The price still faces technical resistance near $24.80, but the combination of institutional activity, on-chain RWA growth, and network usage from prominent partners could help AVAX maintain its position amid broader market volatility through June.

Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see Hotnchill's full AI Policy.

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