Avalanche Hides Bullish Secrets Below $25.78

Avalanche (AVAX) is navigating a critical juncture in its price trajectory, with mixed signals emerging from recent market activity and technical indicators. Currently trading near the $23.71 mark, the token is facing pressure despite a surge in network activity, with daily transactions surpassing 1.5 million. This divergence between fundamental strength and price performance underscores the challenges AVAX faces in the broader crypto landscape.

The recent price action shows AVAX consolidating in a key accumulation range between $23 and $25, with repeated defenses of this zone indicating strong buyer interest. Analysts highlight the significance of this price band as a potential catalyst for a bullish breakout should broader market sentiment improve. On-chain data reveals that the token has been absorbing supply quietly, a pattern often associated with accumulation phases that precede more substantial price moves.

A notable development for Avalanche comes in the form of stablecoin inflows, with fresh data indicating that AVAX has overtaken Solana in 24-hour stablecoin inflows. This shift in capital flow suggests growing liquidity and confidence in the network's ability to support robust on-chain activity. Analysts suggest that this capital movement reinforces AVAX's underlying strength, even amid a broader bearish trend in the market.

However, the technical outlook for AVAX remains cautious, with mixed signals from key momentum indicators. The RSI is currently neutral at 49.18, while the MACD shows bearish divergence, suggesting further downside potential. The price remains below both the 7-day and 20-day SMA, though it still holds above the 50-day SMA at $23.63, indicating that the longer-term uptrend has not been entirely invalidated. Traders are closely watching the $22.19 support level as a critical threshold for near-term price stability.

Analysts project that AVAX may remain in a sideways consolidation phase for the coming week, with a range of $24.06 to $25.78 expected as the most probable scenario. The likelihood of a bullish breakout is considered low, with only one weekly buy signal among key indicators. A break below the $24.06 support could lead to further downside toward $22.97, while a convincing move above $25.78 might signal renewed bullish momentum.

Looking ahead, there are signs of potential for a more significant move, particularly if AVAX can break through the $27 to $28 resistance zone. Analysts suggest that a sustained reclaim above mid-range levels could confirm a bullish reversal and pave the way toward higher price targets. With a macro outlook framing AVAX with a bullish tilt, some projections point toward a potential run toward $71 by Q4 2025, assuming favorable market conditions and continued on-chain growth.

The coming days will be pivotal in determining whether AVAX can hold its support levels and reestablish bullish momentum. With institutional interest and on-chain metrics showing strength, the token remains a subject of close attention for traders and analysts alike, as it balances between consolidation and the possibility of a breakout.

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