What to know:
- Avalanche (AVAX) is testing a key long-term support zone that could determine its next major price trend.
- Analysts see AVAX targeting up to $29.97 if the current demand zone holds and momentum improves.
- Avalanche active addresses jumped 30% to nearly 119,600 daily users, signaling stronger adoption.
Avalanche (AVAX) is approaching a critical long-term support zone that could determine its next market trend. At the same time, rising on-chain activity signals stronger user engagement and ecosystem growth, improving long-term fundamentals and potentially strengthening investor confidence if the positive momentum continues.
At the time of writing, AVAX is trading at $6.55 with a 24-hour trading volume of $233.19 million and a market capitalization of $2.83 billion. Despite the signs of stability over the last 24 hours, the AVAX price structure and increasing active addresses point to a bullish reversal ahead.
Source: CoinMarketCap
Also Read: AVAX Price Stays Near $6.29 as Avalanche Highlights FIFA Collect Migration
AVAX Price Signals Major Long-Term Decision Point
According to the crypto analyst The Boss, Avalanche (AVAX) is trading within a crucial historical demand zone on its monthly chart after losing several major support levels during its prolonged downtrend.
The area has historically attracted strong buying interest, making it a key technical level that could slow bearish momentum and potentially mark the beginning of a long-term accumulation phase for investors.
Source: The Boss’ X Post
Analysts caution that AVAX is at an important crossroads that can lead to a restructuring of the larger market environment.
The achievement of the current demand region may pave the way towards further targets in the $9.15, $10.85, $14.48, $19.65, $22.78, and $29.97 zones as time goes by. However, a confirmed monthly bearish breakdown will intensify the downward trend.
Avalanche Active Addresses Jump 30% in One Week
The data from MSB Intel further highlighted that Avalanche has been buzzing like crazy lately, having seen its average number of active addresses increase by about 30% to around 119,600 daily active users over the past week.
Such an upward trend means that there is increasing activity within the network, since there is greater use of Avalanche wallets to access decentralized applications.
Source: MSB Intel’s X Post
The increase in the number of active addresses shows that people have adopted the blockchain network in their lives much more, and there is network stability despite the discussions only about the price of the coin.
More users joining means growing interest in the blockchain of Avalanche, which will mean more development going on in the ecosystem of Avalanche.
Despite the bullish price predictions and strong network growth, the AVAX price is still moving in neutral territory. This move is also backed by the cautious environment in the crypto market as Bitcoin is moving in a downward direction.
What Comes Next?
For Avalanche to move forward, it will require buyers to defend the long-term demand zone amid increasing on-chain activity.
If the zone is defended successfully, a bounce towards more resistant levels will be achievable. However, should the support level be broken, then it is expected that the bearish trend will persist.
Also Read: AVAX Price Eyes $6.80 as Tokenized Treasury Market Surges to $839M
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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