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The next few days could be critical for AVAX’s price action, hinting at potential movements in the cryptocurrency market.
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AVAX’s breakout from a long-term downtrend underlines its potential for a rally beyond the $45 resistance zone.
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Active addresses surged by 28.56%, reinforcing bullish network activity trends, according to IntoTheBlock’s data.
Avalanche (AVAX) experiences pivotal breakout; on-chain metrics show increasing adoption, making it critical to watch support levels and market sentiment.
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 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 an 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.
Conclusion
As AVAX approaches this critical phase, traders and investors should stay vigilant regarding the support and resistance levels outlined. Maintaining support at $38.57 is essential for a sustained bullish movement, while increasing on-chain activity bodes well for future market dynamics.
