The price of Avalanche (AVAX) has exhibited a notable recovery, having recently escaped a five-month correction pattern following a significant resistance breakout. On Thursday, August 22, Franklin Templeton, a prestigious global investment firm, announced the integration of its Franklin OnChain U.S. Government Money Fund (FOBXX), valued at $420 million, with the Avalanche network. This integration allows for the conversion of USDC stablecoin and facilitates peer-to-peer share transfers via the Benji wallet, thereby significantly enhancing accessibility to the fund.

Consequently, Avalanche’s price increased by 3.5% during the trading session on Saturday, bolstered by a surge across the broader cryptocurrency market. This rally enabled AVAX to surpass a crucial resistance level that had stifled its growth for five months, signaling a potential trend reversal. The overall market sentiment improved as well, with Bitcoin’s price rising from $57,800 to $64,000, a remarkable 10% gain.

Franklin Templeton’s integration is pivotal as FOBXX is recognized as the first U.S.-registered mutual fund to utilize public blockchain technology for transactions and share ownership recording. Each share of FOBXX is represented by a single BENJI token, granting token holders the opportunity to engage with the fund through the Benji Investments application. With this collaboration, Franklin Templeton expresses its commitment to engaging with the Avalanche developer community to foster innovative blockchain solutions.

The price performance of AVAX has illustrated a strong upward trajectory since mid-August, characterized by nine consecutive daily gains reflecting a 40% increase from $19.78 to $27.7, thus elevating its market capitalization to $11.4 billion. On Thursday, the price decisively broke above a falling wedge resistance trendline, indicating a potential recovery phase. The reclaiming of the 20- and 50-day Exponential Moving Averages further supports this positive outlook. Should this bullish momentum persist, AVAX could rally towards the $33 resistance level and potentially reach a peak of $41.8.

Nonetheless, it is important to recognize that the Avalanche price currently rests below the 100- and 200-day EMAs, which suggests that a broader bearish trend persists. A decline back within the wedge pattern initiated by sellers could invalidate the bullish breakout, bringing the price down to a support level around $17.4.

In summary, the combination of Franklin Templeton’s endorsement through the launch of a tokenized fund on the Avalanche network and the subsequent price movement points toward a bullish future for AVAX. However, vigilance is warranted as market dynamics continue to unfold.

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