Avalanche (AVAX) has broken out of a long-term descending channel, bringing optimism to investors. Currently, AVAX is trading at $38.81 with a 24-hour trading volume of $1.78 billion and a market capitalization of $15.87 billion. Despite a 14.27% daily drop, the price has risen by 11.27% over the past week, indicating continued bullish interest.
Key Support at $38.57: The Foundation for Further Growth
AVAX is currently testing critical support at $38.57, which previously acted as major resistance. If this level holds, the token could gain momentum for further growth and target the resistance zone between $45.42 and $47.81.
This zone, however, has previously rejected upward price movements in July 2023 and February 2024, making it a crucial level for AVAX to overcome. Should AVAX break through this resistance, the next target could be $65, a key level that could attract strong buying momentum.
Conversely, failure to hold the $38.57 support may push the price down to secondary support at $32.66.
Growing On-Chain Activity Indicates Increased Adoption
On-chain metrics suggest rising user activity within the Avalanche network:
Active addresses have increased to 60.46K, a 28.56% rise over the past seven days.
Newly created addresses reached 11.98K during the same period, indicating expanding participation in the ecosystem.
This surge in activity highlights growing interest in Avalanche, likely tied to its positive price performance and ecosystem development. Increased activity suggests healthy network usage, reinforcing AVAX’s potential to maintain an upward trajectory if market conditions remain favorable.
Avalanche DeFi Ecosystem Remains Strong
Avalanche’s decentralized finance (DeFi) ecosystem continues to show stability despite short-term price fluctuations:
The total value locked (TVL) stands at $1.362 billion, despite an 8.22% drop over the past 24 hours.
Stablecoin market capitalization within the ecosystem is $1.961 billion.
Daily fees and revenue amount to $92,555, while on-chain trading volume reached $499.98 million in the past 24 hours.
Summary: Key Levels to Watch and Positive Outlook
Avalanche displays positive growth signs after breaking out of a long-term bearish channel and increasing network activity. The support at $38.57 is a crucial level for further development—holding this level could pave the way to the $45.42–$47.81 resistance zone and potentially to $65.
With a stable DeFi ecosystem and growing user interest, Avalanche remains a strong contender for further growth, provided market conditions stay favorable.
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