AVAX, the native cryptocurrency of Avalanche Network, records an insignificant loss of 0.09% during Tuesday’s U.S. trading session. The downtick is likely a brief breather for buyers to regain their bullish momentum after the sharp recovery in the last five days. According to the latest on-chain data, the Avalanche network’s daily transaction volume spiked 275% since last month, suggesting the potential move in price.
Avalanche Network Activity Growth Signals Potential for Market Shifts
Since February 2025, the Avalanche coin price has been consolidating within a narrow range between the $26.80 resistance and $14.60 support. The coin price bounced back twice from both levels, indicating no significant movement from either the bulls or the bears.
However, Avalanche network activity began to record a sudden surge, suggesting a potential move is underway. According to Sentora data, the number of daily transactions on the network has surged 275% since early May.
The blockchain now sees a daily transaction average of 759,000, indicating a surge in adoption and activity within the AVAX ecosystem. Typically, the transaction spike could hint at a broader trend of recovery or expansion in the blockchain’s user base.
A continued trend will support AVAX price recovery and drive for a bullish breakout.
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AVAX Price Fake Breakdown Fuels Bullish Upswing
Over the last five days, the Avalanche price has bounced from a low of $18.43 to its current trading value of $21.83, representing a 19% gain. The upswing proved a fake breakdown from the $19 support and likely liquidated some hasty sellers.
In the daily chart, the reversal indicates the formation of a new higher low, suggesting that a buy-the-dip sentiment has emerged in the market. With the intraday downtick, the AVAX price is seeking support from the 50-day exponential moving average.
If it holds, the buyers could drive a 22.5% surge to challenge the overhead resistance at $ 26.80.
A bullish breakout from this resistance is crucial for buyers to enter a sustained bullish trend.
On the contrary, if coin prices show supply pressure at $26.8, the current consolidation could prolong till next month.
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