- AVAX’s breakout from a long-term downtrend underlined potential for a rally beyond the $45 resistance zone
- Active addresses surged by 28.56%, reinforcing bullish network activity trends
For a brief while, it was good news for Avalanche (AVAX) after it broke out of a long-term descending channel on the charts. In fact, at the time of writing, AVAX was trading at $38.81 with a 24-hour trading volume of $1.78 billion and a market capitalization of $15.87 billion. While the price did drop by 14.27% in the last 24 hours, it appreciated by 11.27% on the weekly charts – A sign of sustained bullish interest.
The altcoin’s price seemed to be retesting the $38.57 support zone – A critical level that could determine its next move. A successful retest could lead to another rally as AVAX approaches higher resistance zones.
Key levels to watch for support and resistance
AVAX recently broke out of a long-term descending channel that persisted throughout 2022 and early 2023. The breakout in mid-2023 signaled a reversal from the bearish trend, positioning AVAX for a potential uptrend.
Source: X
The $38.57 level, which served as a major resistance during past cycles, is now being retested as support. Holding this level would confirm a bullish continuation and set the stage for a third attempt at breaking the $45.42–$47.81 resistance zone.
Meanwhile, this range has previously rejected price rallies in July 2023 and February 2024, making it a crucial area to monitor. If the price surpasses this zone, the next target would lie at $65.00 – A major resistance level that could attract strong buying momentum.
However, a failure to maintain support at $38.57 could push AVAX down to its secondary support level of $32.66.
On-chain activity shows growing adoption
On-chain metrics reflected greater user engagement within the Avalanche network. According to IntoTheBlock‘s data, for instance, active addresses rose to 60.46k – Marking a 28.56% hike over the last seven days.
Additionally, 11.98k new addresses were created during the same period, further showcasing expanding participation in the ecosystem.
Source: IntoTheBlock
These metrics highlight growing interest in Avalanche, which may be tied to its recent price performance and ecosystem developments.
A hike in activity often means healthy network usage, reinforcing AVAX’s potential to maintain its upward trajectory if market conditions remain favorable.
Avalanche’s ecosystem metrics
Avalanche’s decentralized finance (DeFi) ecosystem also seemed to be showing sustained activity. According to DefiLlama, the network’s total value locked (TVL) was as high as $1.362 billion – Despite a 8.22% decline in the last 24 hours.
Avalanche’s stablecoin market capitalization stood at $1.961 billion too, while daily fees and revenue were both reported at $92,555. Finally, Over the last 24 hours, the Avalanche network processed $499.98 million in trading volume, with inflows of $7.81 million – Indicating steady on-chain usage.
These figures, combined with growing active addresses, suggest that Avalanche’s ecosystem remains robust despite short-term price fluctuations. With multiple bullish indicators in play, traders are likely to monitor these key levels and on-chain activity closely as AVAX navigates its next phase.
