Dinari expands tokenized stocks on Avalanche, AVAX trades at $8.418 below key resistance

Avalanche’s onchain tokenization initiative is drawing renewed attention after Dinari, a fintech company focused on digitizing traditional assets, emphasized its commitment to modernizing stock trading through the Avalanche network. Despite the increase in interest, AVAX price action shows continued selling pressure as the token remains below significant resistance levels.

Dinari’s Tokenized Stock Push

Dinari, a US-based platform aiming to bridge conventional finance and blockchain, spotlighted its efforts to transform capital market infrastructure during an episode of Avalanche Originals produced by Avalanche France. CEO Gabriel Otte explained that the company evaluated various blockchain ecosystems but ultimately chose Avalanche, stating, “There really was only one choice.”

Dinari executives described their mission to bring real-world stocks onchain and highlighted their decision to leverage Avalanche’s technology as foundational to their product vision.

Tokenized stocks allow traditional financial assets to be mirrored on blockchain, potentially improving how investors access, transfer, and manage equity. While Dinari has not disclosed specific transaction volumes yet, the collaboration signals a broader use case for the Avalanche network beyond its core focus on cryptocurrencies.

Analysts note that while increased tokenization initiatives can lead to future network growth, immediate AVAX demand is not guaranteed by such announcements alone.

Mini dictionary: Dinari, a fintech company, provides infrastructure to offer real-world assets like equities as blockchain-based tokens, enabling investors to buy and trade fractionalized traditional securities using decentralized networks.

AVAX Price Action and Market Indicators

AVAX rebounded from an intraday low of $8.000, currently trading at $8.418, reflecting a 1.65% gain for the day. Despite this uptick, the token remains below its 50-day moving average of $9.769 but sits slightly above the 200-day moving average of $8.167. The price action suggests ongoing weakness in the short term, as AVAX continues to retreat from its September rally highs above $11.

A critical resistance remains at $10.093, a level AVAX failed to sustain during its previous rally. Technical analysts point to $9.769 as an important threshold; recovering this would signal early momentum is returning. Further upward movement above $10.093 could open the door to the $11 range, though sustained buyer interest will be necessary to support such a move.

The MACD (Moving Average Convergence Divergence), a momentum indicator, remains negative. Its main line stands at -0.396, below the signal line at -0.255, while the histogram is at -0.141, signaling persistent bearish momentum. Though the last candlestick reflected some rebound potential, technical data does not yet confirm a significant trend reversal.

Open Interest and Liquidations Point to Weak Sentiment

CoinGlass data reveals that open interest in Avalanche’s perpetual futures has dropped from about $650 million in early October to roughly $350 million by October 29. This significant decrease indicates shrinking capital tied up in derivatives, accompanied by the token’s sustained price decline.

Liquidation charts reflect sizeable forced closures of long positions in September, with further liquidations observed in October. The current data does not definitively show whether bullish or bearish sentiment prevails among traders, but the fall in open interest generally coincides with reduced risk appetite.

For AVAX to regain upward momentum, it must move back above the $9.769 moving average. A clear and durable break above $10.093 could support a recovery narrative. If prices fall below the $8.167 level, further downside toward $7.510 remains possible. Analysts emphasize that developments like Dinari’s stock tokenization project highlight a potential long-term opportunity, but do not yet provide evidence of increased near-term demand for AVAX.

Although Avalanche tokenization efforts are expanding, the current technical landscape suggests that traders should remain cautious and continue monitoring price action, sentiment indicators, and upcoming events.