Bulls Build a Foundation: AVAX Breakout Hinges on $28 Test

Avalanche (AVAX) has shown renewed signs of strength after the price found critical support at $23.14, triggering a rebound that pushed the asset to $24.90 as of press time. According to market analysts, the recent accumulation and sustained buying volume suggest that bulls are regaining control after weeks of consolidation. This bounce has drawn attention from traders and investors, with the $28 level now serving as a key checkpoint for the next potential move upward. If the price holds above this threshold, it could position AVAX for a push toward the $32 resistance level, a target frequently cited by technical analysts across multiple platforms. The coin’s 24-hour trading volume currently stands at $757 million, reflecting increased market participation and signaling a potential shift in momentum [2].

The recent price action has been supported by a strong technical foundation. Traders and analysts have observed that AVAX is forming a bullish pattern, with key indicators such as the RSI and MACD showing signs of alignment in favor of buyers. A breakout above $28 would be critical for confirming a broader recovery trend. The accumulation range between $17 and $22 remains a focal point for those looking to build long-term positions, as it provides a low-risk entry with significant upside potential if the price resumes an upward trajectory [2]. The immediate support at $23 has held multiple times, preventing a deeper decline and reinforcing the idea that institutional or retail buyers are becoming more active in the market. This behavior is particularly notable given the broader context of AVAX’s year-to-date performance, which has seen a 35% decline amid a relatively muted recovery for major crypto assets.

Avalanche’s fundamentals have also shown signs of improvement. On-chain data indicates that the network is experiencing a surge in activity, with daily transactions exceeding 1.3 million in the past 24 hours—significantly higher than earlier levels in August. This increase in utility is being interpreted as a positive signal, as it demonstrates growing adoption and usage of the Avalanche platform. The rise in transaction volume is also being seen as a precursor to stronger price action, as fundamentals align with bullish technical setups. With a relatively stable failure rate and no signs of network congestion, the platform appears to be handling increased demand effectively [4].

In terms of market structure, AVAX is currently aligning with historical patterns seen in similar assets such as Chainlink (LINK). Analysts have drawn parallels between the current consolidation phase and LINK’s earlier rally, where a prolonged base was followed by a sharp breakout. If AVAX can maintain its current support levels and generate enough buying pressure, it could follow a similar trajectory. The green support band between $22 and $23 has been a consistent anchor for the price, and a breakout from this range could signal the start of a more sustained uptrend [4]. The formation of a golden cross between the 50-day and 200-day moving averages further reinforces the idea that momentum is shifting in favor of the bulls.

Looking ahead, the next critical test for Avalanche will be whether it can hold above $28 without retreating into a consolidation phase. If the price succeeds in reclaiming this level, it will likely target $32 as the next resistance point. However, failure to maintain this momentum could prolong the current sideways movement. Analysts remain cautiously optimistic, with many emphasizing that the current market conditions provide a reasonable risk-reward profile for investors seeking to position early. The key indicators to monitor include the RSI maintaining above 50, sustained volume above recent averages, and continued price stability above $24.63, which acts as a psychological and technical pivot point [3].

Source:

[1] Grayscale Files S-1 For Spot Avalanche ETF With Ticker ... (https://cointelegraph.com/news/grayscale-files-spot-avalanche-etf-ticker-avax)

[2] Avalanche Price Holds $23 Support, Eyes $32 Recovery (https://blockonomi.com/avalanche-price-holds-23-support-eyes-32-recovery/)

[3] AVAX Price Prediction: Targeting $32 Breakout After 13% ... (https://blockchain.news/news/20250823-price-prediction-avax-targeting-32-breakout-after-13-rally)

[4] Key Support Holds as Bulls Eye $34 Breakout Target (https://bravenewcoin.com/insights/avalanche-avax-price-prediction-key-support-holds-as-bulls-eye-34-breakout-target)