AVAX, the native cryptocurrency of the Avalanche Network, recorded a sharp sell-off on Friday, July 24th. Following the broader market correction, the coin price shows notable selling pressure in the Asian market hours and a slight pullback in the U.S. market. The long-tail rejection in the daily candle shows sustainability above the 38.2% Fibonacci retracement level amid significant growth in on-chain activity.
Avalanche Sees Major Surge in On-Chain Activity
Over the past two weeks, the Avalanche price showed a sharp recovery from $17.69 to a recent high of $26.53, projecting a nearly 50% growth. A primary catalyst for this recovery was the regulatory development in the US and notable support from the on-chain activity in Q2 2025.
According to a recent analysis by X (formerly known as Twitter) user Gengar, the Avalanche recorded a sustainability increase in daily transactions and active addresses.
Data from Messari shows the average daily transaction across AXAV’s C-chain and Layer 1 networks saw a substantial surge of 169.9% QoQ to 10.1 million. The increase highlights a rise in network activity and increasing use of Avalanche’s ecosystem for decentralized finance (DeFi) and blockchain-based applications.
Additionally, the daily average active addresses jumped 110.4% quarter to quarter to 519,954. This surge indicates more users are engaging with the network, further validating Avalanche’s appeal.
If the trend in these two metrics continues, AVAX could experience natural and sustainable demand pressure.
AVAX Price Rebound From Key Fibonacci Support
Over the past three days, the Avalanche price witnessed a sharp pullback from $26.53 to a $22.53 low, accounting for a 15% loss. The correction aligns with a broader market sell-off as a majority of major digital assets enter a post-rally fall.
However, the AVAX price holds above the $38.2 Fibonacci requirement level and bounced back to the current trading price of $23.44. Historically, the Fibonacci level has acted as a suitable pullback support for buyers to recoup the exhausted bullish momentum.
If the demand pressure at these support levels remains intact, the coin price could rechallenge the immediate resistance at $24.50, signaling the continuation of the uptrend. The potential breakout could bolster an 8.5% surge to challenge the recent swing high at $26.53, followed by a leap towards $30.
On the contrary, if the price breaks below the $22.35 level, sellers could strengthen their grip for a prolonged action.
Also Read: Bitcoin Struggles for Direction, But NUPL Assures Room for Growth
