After breaking out of a long-term descending channel on the chart, Avalanche (AVAX) briefly welcomed good news. 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. Although the price dropped 14.27% in the past 24 hours, it rose 11.27% on the weekly chart—indicating sustained bullish interest.
The price of altcoins seems to be retesting the support area of $38.57—this key level may determine its next movement. As AVAX approaches a higher resistance zone, a successful retest could lead to another rebound.
Key support and resistance levels to watch
AVAX recently broke through a long-term downward channel that spanned 2022 and early 2023. The mid-2023 breakout signals a reversal of the bearish trend, bringing potential upward momentum for AVAX.
$38.57 level has acted as a major resistance in previous cycles and is now being retested as a support level. Holding this level will confirm the continuation of bullish momentum and lay the groundwork for a third breakout of the resistance zone between $45.42 and $47.81.
At the same time, this range previously rejected price increases in July 2023 and February 2024, making it a key area to monitor. If the price surpasses this area, the next target will be $65.00— a major resistance level that may attract strong buying momentum.
However, if the support level of $38.57 is not maintained, AVAX could fall to the secondary support level of $32.66.
On-chain activity indicates a continuous increase in adoption
On-chain indicators reflect an increase in user participation within the Avalanche network. For example, according to IntoTheBlock, the number of active addresses rose to 60.46k—an increase of 28.56% over the past seven days.
Additionally, 11.98k new addresses were created during the same period, further showcasing the ongoing expansion of ecosystem participation.
These indicators highlight the growing interest in Avalanche, which may be related to its recent price performance and ecosystem development.
An increase in activity usually suggests good network usage, and if market conditions remain favorable, this will enhance AVAX's potential to maintain an upward trend.
Ecosystem indicators of Avalanche
The decentralized finance (DeFi) ecosystem of Avalanche also seems to show sustained activity. According to DefiLlama, despite an 8.22% drop in the past 24 hours, the network's total locked value (TVL) stands at $1.362 billion.
The market capitalization of Avalanche's stablecoins has also reached $1.961 billion, with daily fees and revenue at $92,555. Finally, in the past 24 hours, the Avalanche network processed $499.98 million in transaction volume, with an inflow of $7.81 million—indicating stable on-chain usage.
These data, combined with the growing number of active addresses, indicate that despite short-term price fluctuations, Avalanche's ecosystem remains strong. As multiple bullish indicators come into play, traders may closely monitor these key levels and on-chain activity as AVAX enters its next phase.