Avalanche Testing Major Resistance Levels

The price of Avalanche (AVAX) has displayed notable volatility in the last 24 hours, with significant movements that suggest the possibility of a bullish trend. Following the weakness that was recorded earlier this day, AVAX surged momentarily to record a high of $25.50 before facing a slight retracement and stabilizing just above $25.

Despite the dip, the coin appreciated marginally by 0.7% in the 24-hour timeframe. Analysts are keeping a keen eye on the price action, hoping for a breakout, with special emphasis on key resistance levels that will define possible future movements in prices.

Testing Key Resistance Levels

According to chart analysis shared by Ali Martinez, Avalanche is currently at a pivotal point, testing crucial resistance levels between $25 and $26. This range has served as a technical and psychological barrier in recent months, with price movements frequently facing rejection around these levels. A brief rally towards $27 has been the highest upward momentum in recent weeks, but AVAX has struggled to break through the $26 mark.

Source: X

Martinez notes that if Avalanche succeeds in breaching resistance at $27, it would signal a more sustained bullish trend. Such a breakout could pave the way for upward price targets of $32 and perhaps $37, levels that have served as either consolidation or rejection points in the past.

Their implication could very well become relevant in future price movements. Investors will, therefore, keenly look out for any sort of momentum that might signal $AVAX's ability to break through these resistance areas.

Volume Surge with Recovery Signs

Concurrently, chart analyst CW has marked the swift recovery on the AVAX 4-hour chart, indicating strong upward momentum. After consolidating, the coin is pushing higher, with the price currently testing around $25.56. This increase in price is accompanied by a corresponding spike in trading volume, suggesting that market participants are regaining their confidence in AVAX's chances of further gains.

CW also identifies a major resistance level at around $27.5 and calls it a very established sell wall. Much, in terms of price action, will depend on AVAX if it breaks above this level. Should it succeed, there will be a large buying vacuum created and the price will likely head towards the next resistance level of $36. The volume spike that occurred recently on August 15th shows increased interest in AVAX, which could very well be the force behind the move.

Increasing Network Activity

Again, into bullish momentum, IntoTheBlock data portrays the major trends exhibited in the Avalanche (AVAX) network of the past few years.

Though showing some degradation in supported active addresses, the late data have shown an increase of 32.52% in new addresses over the past seven days, marking a renewed interest in Avalanche .

Source: IntoTheBlock

The rise in new addresses eventually clashes with the active addresses' decline, denoting that while new users sign up, many are not active or just leave the network without engaging in any transactions. The zero balance addresses have also seen a significant decrease of 88.34% in the past seven days, signaling that many users are either consolidating or liquidating their holdings.