Avalanche AVAX gains 2% as institutional interest surges 275% in daily transactions

Avalanche ($AVAX) has emerged as a notable altcoin attracting more institutional investors aiming to diversify their crypto portfolios. With a fully diluted valuation of approximately $10 billion, AVAX experienced a 2% gain on Tuesday, trading around $21.92 during the mid-North American session. This price rebound aligns with growing calls for an altseason in 2025 and a macro reversal pattern in Bitcoin's dominance, indicating increased cash inflow into altcoins.

The Avalanche network has seen a significant surge in activity, with a 275% increase in daily transactions since May 2025, reaching about 759,000 transactions. This resurgence follows a period of dormancy over the past year. The network has also gained traction among institutional investors looking to tokenize real-world assets (RWA), ranking second after Chainlink in the development of RWA projects, according to market data analysis.

In the 4-hour timeframe, AVAX has been consolidating since late April after breaking out from a falling logarithmic trendline established in the first quarter. The recent price pump has led to a breakout from a falling wedge pattern, signaling further bullish sentiment. The 4-hour MACD line crossing above the zero line indicates rejuvenated bullish momentum. A consistent close above $25 could trigger a bull rally towards the next short-term target of approximately $35.

AVAX has established a critical support zone at around $20.25, following a sharp reversal from a high of $21.48. This support zone has shown resilience against downward price movements. The short-term forecast for AVAX suggests a potential price range between $21.53 and $21.85 over the next 24 hours, with a predicted price of $21.43 for the following day. This indicates a slight upward trend in the near term, although market volatility and external factors could influence these predictions.

Several analysts have provided long-term price predictions for AVAX. One analysis suggests AVAX could reach $240 by 2027, while another projection indicates a potential increase to $83.90 by 2026, representing a 284.96% gain from today's price. Additionally, AVAX is projected to increase over the next several years, with prices potentially reaching $38.96 in 2026 and $191.13 by 2030. These long-term forecasts are based on various factors, including market trends, technological advancements, and the overall adoption of the Avalanche platform.

The recent surge in AVAX's price above $20 has been driven by a resurgence of interest in gaming, particularly with the launch of new gaming projects. This increased interest has contributed to a nearly 3% increase in AVAX's price over the last 24 hours, highlighting the potential for further price appreciation in the near term. However, it is important to note that price movements in the cryptocurrency market can be highly volatile, and investors should exercise caution when making investment decisions.