While the larger cryptocurrency market is facing a correction, Avalanche (AVAX) seems to be defying the trend. According to CoinGecko, Avalanche (AVAX) has registered a 9.8% rally in the last 24 hours, a 17.5% rally in the last week, a 36.5% rally in the 14-day charts, and 33.5% over the previous month. AVAX’s rally is quite surprising, given that most other crypto assets are trading in the red zone today. Let’s discuss why AVAX is behaving differently.
What’s Behind Avalanche’s Anomalous Rally?
Avalanche’s (AVAX) divergent upswing could be due to updates around Grayscale’s Avalanche Trust. According to reports, the project has submitted a filing to convert the trust into a spot ETF. Grayscale initially submitted its S1 filing in late August. The decision to convert the trust into a spot ETF may have boosted investor confidence. Avalanche (AVAX) also witnessed a breakout rally in mid-September after Bitwise applied for a spot ETF.
Crypto-based ETFs have been key to this year’s market cycle. Bitcoin (BTC) and Ethereum (ETH) climbed to new peaks, thanks to consistent ETF inflows. Avalanche (AVAX) may experience a similar pattern if the SEC approves the ETF applications. The SEC has taken a pro-crypto stance after President Trump assumed office. The financial watchdog may approve at least one AVAX ETF, given its bullish crypto outlook.
Will The Asset Continue Its Rally?
According to CoinCodex analysts, Avalanche (AVAX) will continue its rally over the coming weeks. The platform anticipates the asset to hit $40.61 on Nov. 6, 2025. Hitting $40.61 from current price levels will entail a rally of about 17.64%.
There is also a possibility that Avalanche (AVAX) will face a correction over the coming days, given that the larger market is still in a bearish phase. Bitcoin (BTC) seems to be consolidating at the $112,000 price level. The market is unlikely to recover unless BTC makes a move.
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