Investor Confidence and Inflows Fuel AVAX’s Quiet Bull Case

Avalanche’s (AVAX) recent price action has sparked renewed interest among investors, with technical indicators and capital inflows suggesting a potential bullish breakout. AVAX is currently trading at $24.54, having reclaimed its 200-day exponential moving average (EMA), a level historically associated with a shift from bearish to bullish momentum. The price has demonstrated resilience above key support levels and has formed a tight range pattern, signaling that sellers are losing control to buyers who are building a stronger base for a potential upswing [1].

Capital inflows further reinforce the bullish narrative. Nicolas Lemaitre reported that Avalanche recorded the highest weekly net inflows among major blockchain networks, with over $111 million entering the ecosystem in the past week. This trend contrasts sharply with outflows observed on Ethereum and Solana, highlighting a shift in liquidity toward AVAX. Sustained inflows of this magnitude typically indicate growing participant confidence, particularly when paired with a stable technical structure [1].

Structurally, the price has established a higher-low base on the chart, with the 200-day EMA reclaim and weekly inflows converging to support a strong foundation. Analysts have noted that the current setup reflects a controlled build-up rather than an overextended move, suggesting that buyers are entering the market with strategic intent. The next key resistance level is positioned around $27, and a clean breakout above this threshold would likely propel AVAX toward the $30 psychological level [1].

Short-term traders are closely monitoring AVAX’s ability to maintain its support around $23 to $24, as well as the volume expansion accompanying its price movement. A successful breakout through the $27 resistance would not only validate the current bullish narrative but also open the door for AVAX to retest its former highs of $50. Analyst Skrrt has hinted at the possibility of a “massive repricing” driven by Avalanche’s ecosystem expansion, which could serve as a catalyst for further price appreciation. As AVAX continues to consolidate and demonstrate ecosystem growth, the probability of a retest of its $50 level increases, especially if the current momentum and inflows remain consistent [1].

Looking ahead, the broader question for investors is whether Avalanche has the necessary momentum and capital rotation to retest its former peaks later in the current market cycle. While AVAX remains a major player in the smart contract and DeFi space, analysts caution that its market capitalization, currently over $13 billion, limits the potential for a 20x or 30x run as seen in earlier cycles. Instead, the focus is shifting toward newer, lower-cost protocols like Mutuum Finance (MUTM), which offer high-growth potential and innovative utility-first models. These emerging projects are increasingly capturing investor interest, particularly among those seeking the next wave of DeFi innovation [3].

Source:

[1] Ecosystem Growth Sparks Debate Over a Move Back to $50 (https://bravenewcoin.com/insights/avalanche-avax-price-prediction-ecosystem-growth-sparks-debate-over-a-move-back-to-50)

[2] AVAX.X - Avalanche (https://stocktwits.com/symbol/AVAX.X)

[3] Avalanche (AVAX) Struggle for Growth, While This New ... (https://www.mitrade.com/insights/news/live-news/article-3-1102502-20250908)