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Avalanche (AVAX) is experiencing a surge in network activity, signaling growing bullish momentum despite looming resistance levels that could impact its short-term price trajectory.
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Recent data reveals a significant increase in daily transactions and active addresses, driven by expanding DeFi applications and gaming integrations on the Avalanche network.
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According to COINOTAG, “AVAX’s Taker Buy Dominance and Open Interest metrics indicate rising trader confidence, yet whale netflow patterns suggest cautious positioning near critical resistance zones.”
Avalanche’s network growth fuels bullish sentiment, but resistance near $24 challenges AVAX’s price breakout potential amid mixed whale activity and trader behavior.
AVAX Eyes $24 Resistance: Key Technical Levels and Market Sentiment
Avalanche’s price action currently hovers near a critical resistance band between $22.5 and $23.6, aligning with the 0.5 to 0.618 Fibonacci retracement from the April downturn. This confluence zone is pivotal for determining the next directional move. The asset remains within an ascending channel, reinforcing a bullish structure; however, the Stochastic RSI indicator has surged above 80, signaling potential overbought conditions. This suggests that a short-term consolidation or minor pullback could precede any decisive breakout attempt. A sustained close above $24.1 would likely shift market sentiment positively, validating further upside momentum and potentially attracting additional buying interest.
Source: Trading View
Trader Activity Intensifies: Taker Buy Dominance and Whale Behavior
Market data highlights a notable spike in Taker Buy Dominance on AVAX’s spot market, reflecting aggressive buying pressure from traders rather than passive accumulation. This uptick suggests that bullish momentum is strengthening in real time, creating favorable conditions for a potential breakout if sustained during price consolidation phases.
Complementing this, Large Holder Netflow data reveals a complex picture: a 45.60% increase over the past 90 days indicates long-term accumulation by whales, yet a sharp 53.31% decline over the last 30 days points to recent profit-taking or cautious repositioning. This divergence underscores a split in whale conviction as AVAX approaches its resistance cluster. The forthcoming price reaction in this zone will be crucial to ascertain whether these large holders will underpin the rally or contribute to selling pressure.
Source: CryptoQuant
Source: IntoTheBlock
Speculative Interest and Open Interest Trends Signal Cautious Optimism
Open Interest in AVAX futures has risen by 11.37%, reaching $558 million, while trading volumes remain robust at approximately $1.16 billion. This increase reflects renewed speculative interest in the asset. However, the absence of extreme leverage positions indicates that traders are approaching the market with measured caution, avoiding excessive risk exposure.
Binance’s Liquidation Map highlights a significant cluster of long liquidation orders between $23.3 and $24.5, marking a formidable resistance zone. A successful breach above this level could trigger a cascade of short liquidations, amplifying volatility and potentially accelerating upward price momentum. Conversely, failure to overcome this barrier may trap bullish traders, increasing the likelihood of a retracement or consolidation phase.
Source: Coinglass
Network Growth vs. Price Action: Will Fundamentals Drive the Next Move?
Avalanche’s network fundamentals are strengthening markedly, with daily transactions surging by 275% since early May and monthly active addresses surpassing 2.2 million. This growth is fueled by expanding subnet deployments, increased DeFi activity, and gaming ecosystem integrations, indicating a transition from speculative trading to genuine network utility.
Despite these positive on-chain developments, AVAX’s price remains constrained by strong resistance between $23.3 and $24.5. The market’s next directional move will depend heavily on whether whale investors choose to support the rally or capitalize on recent gains. A successful flip of this resistance into support could catalyze a breakout, while rejection may lead to a retracement toward lower support levels, underscoring the delicate balance between network growth and market sentiment.
Conclusion
Avalanche’s recent surge in network activity and trader engagement underscores a robust fundamental backdrop supporting AVAX. However, the presence of significant resistance near $24, combined with mixed signals from whale behavior and cautious speculative positioning, suggests that short-term price action may remain volatile. Investors and traders should closely monitor key technical levels and on-chain metrics to gauge whether AVAX can sustain its bullish momentum or faces a corrective phase. Maintaining vigilance around these dynamics will be essential for navigating AVAX’s evolving market landscape.
