AVAX climbed 6% to $20.96 on June 7 as markets reacted to reduced geopolitical risks following eased tensions between former President Donald Trump and Elon Musk. The rally reversed losses from a sector-wide sell-off triggered by their public disputes over energy policies and Twitter’s content moderation practices. Investors interpreted the de-escalation as removing a headwind for tech-friendly crypto projects.
The price recovery coincided with increased institutional activity in Avalanche ecosystem projects, particularly subnet deployments and partnerships with traditional finance firms. On-chain metrics showed a 15% rise in daily active addresses, while the Avalanche Foundation announced new tokenization initiatives targeting real-world assets. These developments reinforced AVAX’s position as a leader in institutional blockchain adoption.
Technical analysts note AVAX cleared key resistance at $20.50, with the next target at $22.80 if buying pressure persists. The rally outpaced broader market gains, suggesting project-specific catalysts beyond macro factors. However, some traders remain cautious due to Avalanche’s relatively high inflation rate and upcoming token unlocks in Q3 2025.
