Recent developments have signaled a positive outlook for Avalanche (AVAX) as it successfully broke out of a prolonged descending channel on the trading charts. As of the latest data, AVAX is currently trading at $38.81, boasting a 24-hour trading volume of $1.78 billion and a market capitalization of $15.87 billion. Despite experiencing a 14.27% drop in the past 24 hours, the coin has seen an 11.27% increase in value over the course of the week, indicating strong ongoing bullish sentiment.
The coin’s price appears to be revisiting the crucial $38.57 support level, which could play a significant role in determining its future trajectory. A successful test of this level may pave the way for another price surge as AVAX heads towards challenging higher resistance levels.
Crucial Support and Resistance Levels to Monitor
AVAX recently made a notable breakout from a long-standing descending channel that had been in place since 2022 and early 2023. This breakout in the middle of 2023 marked a shift from a bearish trend to a potentially upward trajectory.
The $38.57 level, previously a major resistance point in previous cycles, is now being reevaluated as a crucial support area. Holding firm at this level would confirm a bullish continuation and set the stage for a potential breakthrough of the $45.42–$47.81 resistance zone.
This resistance zone has historically acted as a barrier to price movements in July 2023 and February 2024, underscoring its significance. Should AVAX manage to breach this zone, the next target could be set at $65.00, a significant resistance level likely to attract substantial buying interest.
In contrast, a failure to sustain support at $38.57 might result in a downside move towards the secondary support level at $32.66.
Increased On-Chain Activity Indicates Growing Adoption
On-chain data reveals a surge in user engagement within the Avalanche network. Notably, active addresses have risen to 60.46k, demonstrating a notable uptick of 28.56% over the past week.
Moreover, there has been the creation of 11.98k new addresses during the same period, a clear sign of expanding participation within the ecosystem.
These metrics suggest a rising interest in Avalanche, potentially linked to recent price movements and ecosystem advancements. An uptick in on-chain activity is often indicative of healthy network usage, reinforcing AVAX’s potential for sustained upward momentum under favorable market conditions.
Ecosystem Vibrancy: Avalanche’s DeFi Metrics
Avalanche’s decentralized finance (DeFi) ecosystem is showing continued activity levels. According to DefiLlama, the network’s total value locked (TVL) stands at $1.362 billion, despite a slight 8.22% drop in the past 24 hours.
Furthermore, Avalanche’s stablecoin market capitalization is at $1.961 billion, and daily fees and revenue are both around $92,555. Over the last 24 hours, the network has processed $499.98 million in trading volume, with inflows totaling $7.81 million, indicating consistent on-chain activity.
These metrics, alongside the growing active addresses, signify the resilience of Avalanche’s ecosystem amid short-term price fluctuations. As various bullish signals emerge, traders are likely to closely monitor the key levels and on-chain activity as AVAX charts its next phase.