After a period of positive momentum, Avalanche (AVAX) successfully broke free from a prolonged descending channel as per market data. As of the latest update, AVAX was valued at $38.81, boasting a 24-hour trading volume of $1.78 billion and a market cap of $15.87 billion. Despite enduring a 14.27% downturn over the past day, the price surged by 11.27% on a weekly basis, an encouraging sign of ongoing bullish sentiment.
The current price movement suggests that AVAX is revisiting the crucial support level at $38.57, which may play a pivotal role in determining its future trajectory. A solid defense of this level could signal another surge towards higher resistance levels.
Crucial Support and Resistance Levels to Monitor
Recently, AVAX managed to break out of a lingering descending pattern that persisted from 2022 into early 2023. This breakout during mid-2023 indicated a shift from bearish to potentially bullish momentum.
The $38.57 mark, historically a significant resistance level, is now being tested as a support factor. Maintaining stability here could confirm an upward trend, setting the stage for an attempt to breach the challenging $45.42–$47.81 resistance zone.
Notably, this price range has served as a barrier in past rallies during July 2023 and February 2024, making it a critical area to watch closely. If AVAX manages to break through this zone, the next target could be set at $65.00, a key resistance level with considerable potential for attracting substantial buyer interest.
Conversely, a failure to uphold support at $38.57 might lead AVAX to test its secondary support level at $32.66.
Increasing On-Chain Activity Indicates Growing Adoption
On-chain data indicates a surge in user participation within the Avalanche network. According to metrics from IntoTheBlock, active addresses surged to 60.46k, marking a 28.56% increase over the last week. New addresses created during this period totaled 11.98k, further highlighting expanding community engagement.
These metrics underscore rising enthusiasm for Avalanche, potentially fueled by recent price gains and ecosystem advancements.
In general, heightened activity often signifies healthy network utilization, reinforcing AVAX’s potential for sustained upward movement under favorable market conditions.
Key Metrics Within Avalanche’s Ecosystem
Avalanche’s decentralized finance (DeFi) ecosystem also indicates steady activity. Based on DefiLlama figures, the network’s total value locked (TVL) reached $1.362 billion, despite experiencing an 8.22% decline in the last 24 hours.
Moreover, Avalanche’s stablecoin market capitalization hit $1.961 billion, with daily fees and revenue standing at $92,555. Over the past day, the Avalanche network processed $499.98 million in trading volume, witnessing inflows of $7.81 million, demonstrating consistent on-chain use.
These statistics, coupled with the surge in active addresses, suggest that Avalanche’s ecosystem remains resilient amid short-term price fluctuations. With multiple positive indicators in play, traders are likely to closely monitor the critical support and resistance levels, as well as on-chain activities, to navigate AVAX’s future moves.