What to know:
- AVAX gained attention after Avalanche’s stablecoin supply increased 48% in one week.
- BlackRock’s BUIDL fund reportedly grew more than 100% on Avalanche during the same period.
- Analyst Michaël van de Poppe identified a bullish divergence and higher-low formation, targeting $10+ if momentum continues.
Avalanche’s native token, AVAX, is back in focus after a combination of rising on-chain activity and improving technical indicators prompted analysts to turn constructive on the asset.
Crypto analyst Michaël van de Poppe believes AVAX may not remain at current price levels for long, citing strong ecosystem growth alongside a bullish chart structure.
Stablecoin Supply Climbs 48% as Avalanche Activity Expands
In a post on X, Michaël van de Poppe highlighted that Avalanche’s stablecoin supply increased by 48% in one week. He also noted that BlackRock’s BUIDL fund has grown by more than 100% on Avalanche over the same period, pointing to increasing blockchain adoption.
The analyst wrote, “The activity continues to expand on AVAX, a strong signal of adoption and ecosystem growth.” Rising stablecoin liquidity often indicates improving capital efficiency, as traders and decentralized applications have more funds available for lending, trading, and other on-chain transactions.
Also Read: AVAX Price Analysis: Bullish Setup Strengthens With NEC Identity Partnership
Technical Indicators Suggest Bullish Momentum
Beyond fundamentals, van de Poppe identified several positive technical signals for AVAX. According to his analysis, the token has formed a bullish divergence on the daily timeframe, while also establishing a higher low that continues to act as a key support level.
He added that this price structure could lead to a test of higher resistance levels. “What’s the potential target for this one? I would be looking at $10+,” the analyst stated, although he emphasized that the scenario depends on continued strength above current support.
Why Ecosystem Growth Matters for AVAX
For investors, the latest on-chain metrics provide context beyond daily price fluctuations. Expanding stablecoin supply generally reflects increasing network usage and liquidity, while the growth of tokenized real-world assets such as BlackRock’s BUIDL fund demonstrates broader institutional engagement with blockchain infrastructure.
Avalanche has increasingly positioned itself as a network for institutional tokenization and decentralized finance. If these trends continue, sustained user activity could strengthen demand for AVAX through transaction fees, staking, and broader ecosystem participation.
What Investors Should Watch Next
The immediate focus remains whether AVAX can maintain its higher-low support and break above nearby resistance levels. A successful breakout could validate the bullish divergence identified by analysts, while failure to hold support may delay any recovery toward the projected target.
Investors should also monitor stablecoin growth, BUIDL fund expansion, and overall Total Value Locked (TVL) on Avalanche. Continued institutional participation and healthy on-chain activity would provide stronger evidence that the current optimism is supported by network fundamentals rather than short-term market sentiment.
Also Read: AVAX Price Prediction: Bullish Pattern Signals Potential Rally to $8 Target
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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