The next few days could be a critical juncture for AVAX’s price action and could signal possible changes in the cryptocurrency market.
AVAX has broken out of its long-standing downtrend, raising the possibility of a bounce above the $45 resistance level.
According to IntoTheBlock data, the 28.56% increase in active addresses indicates that there is optimistic activity in the network and this development could increase investors' interest in AVAX.
On-chain data is signaling increasing adoption in the Avalanche (AVAX) ecosystem, making it critical to monitor support levels and market sentiment. AVAX broke out of its long-term downtrend channel in 2022 and early 2023, with a significant breakout in mid-2023. This breakout was seen as a signal that put AVAX in a potential uptrend.
The $38.57 level has historically been a strong resistance level but is currently being tested as support. Holding this level could allow AVAX to rally higher and make a third attempt at breaking out of the $45.42-$47.81 resistance zone.
On the other hand, price bounces were rejected in this resistance range in July 2023 and February 2024. Therefore, this becomes a critical area to watch carefully. If AVAX price breaks this resistance level, the next target can be set at $65.00; this is a significant resistance level where strong buying momentum may run out.
However, if the support at $38.57 disappears, AVAX could drop to the second support at $32.66.
User engagement on the Avalanche network continues to grow. According to IntoTheBlock data, active addresses have increased by 28.56% over the past seven days to 60.46k. During the same period, 11.98k new addresses were created, indicating that participation in the ecosystem is expanding. This data shows the interest and increasing activity in Avalanche, which increases the potential for positive price action for AVAX.
Avalanche’s decentralized finance (DeFi) ecosystem is also showing significant development. According to DefiLlama data, the network’s total locked value (TVL) has reached $1.362 billion. Although there has been a decrease of 8.22% in the last 24 hours, this value does not have a significant impact on the overall growth trend.
Avalanche’s stablecoin market cap has reached $1.961 billion, while daily fees and revenues were reported as $92,555. The last 24-hour trading volume was $499.98 million, and the inflow was $7.81 million. This data shows that usage on the network continues to be stable.
This on-chain data and the increasing number of active addresses suggest that the Avalanche ecosystem remains strong and has established a solid foundation despite short-term price fluctuations. With multiple positive indicators, investors are expected to keep a close eye on AVAX’s price action and on-chain activity.