Avalanche (AVAX) Price : Avalanche Shows Strong Accumulation Despite 14% Monthly Drop

TLDR

• AVAX has fallen 14% in the past month, trading at $36.03 with strong trading volume of $472.5M
• Technical analysis shows AVAX trading in a descending triangle pattern with critical support at $34.18
• CoinCodex predicts potential surge to $70.31 by January 30, with February average around $50
• Spot netflow data indicates investor accumulation with 2.18M AVAX tokens moving off exchanges
• Trading activity remains high with volume up 38.03% to $702.2M despite price decline

Avalanche’s native token AVAX has experienced a challenging start to 2025, recording a 14% decline over the past month while trading at $36.03. Despite this downward price movement, market data reveals interesting patterns in trading activity and investor behavior that warrant closer examination.

The cryptocurrency’s recent performance shows mixed signals, with its 24-hour trading volume reaching $472.5 million, representing a 38.03% increase. This surge in trading activity comes even as the token’s market capitalization stands at $14.82 billion, based on a circulating supply of 410 million AVAX tokens.

Technical analysis of the AVAX/USDT chart reveals that the token is currently trading within a descending triangle pattern. This formation is characterized by lower highs along a downward-sloping trendline, meeting a horizontal support level at $34.18. This support level has proven crucial for buyers, though repeated tests of this zone could potentially weaken its strength.

Market observers note that if AVAX breaks below the $34.18 support level, it could trigger a cascade of selling pressure. In such a scenario, technical indicators suggest possible price targets at $29.17, $24.69, or even $22.18, based on Fibonacci extension levels.

Avalanche Price on CoinGecko

For bulls to regain control of the market, AVAX needs to break above the descending trendline, which currently sits near the $37-$38 range. Additional resistance levels include $37.53 and $40.17, corresponding to key Fibonacci retracement levels that have previously rejected price recovery attempts.

Crypto analyst Ali has identified the $37-$33 range as a critical zone, suggesting that AVAX is preparing for a potential 40% price move once it breaks out of this consolidation period. The direction of this breakout will likely determine the token’s next major trend.

Recent spot netflow data provides interesting insights into investor behavior. As of January 24, 2025, exchange data shows an outflow of 2.18 million AVAX tokens, indicating that investors are moving their holdings off exchanges. This trend typically suggests accumulation or a reduction in immediate selling pressure.

The pattern of consistent outflows has been observed since late December, contrasting with the large inflows exceeding $20 million recorded between mid-November and early December. Those earlier inflows coincided with selling activity during price peaks, making the current outflow pattern particularly noteworthy.

Trading activity metrics remain robust despite the recent price decline. Data from Coinglass reveals that open interest has increased slightly by 0.40% to $678.33 million, suggesting sustained trader engagement in the market.

#Avalanche $AVAX is prime for a 40% price move once it breaks outside of the $37–$33 range! pic.twitter.com/VBnjJoigbz

— Ali (@ali_charts) January 23, 2025

CoinCodex’s price predictions present an optimistic outlook, suggesting that AVAX could reach $70.31 by January 30. While such predictions should be viewed with caution, they project an average price range of $50 for February, representing a potential 50% increase from current levels.

Looking at the broader context, Avalanche’s platform continues to focus on creating custom blockchain networks and decentralized applications. The project’s emphasis on speed and cost-efficiency has maintained developer interest across various sectors, including DeFi and gaming.

The platform’s commitment to interoperability and scalability remains a key feature, though recent price action suggests market participants are still evaluating its long-term potential. Current trading patterns indicate strong interest at lower price levels, as evidenced by the increasing trading volume.

Exchange data shows that market participants are actively trading AVAX, with many preparing for a decisive move once the price exits its current range. The combination of high trading volume and increasing exchange outflows creates an interesting market dynamic.

As of the latest market data, AVAX continues to trade between $33 and $37, with traders closely monitoring the $34.18 support level and resistance near $37 for signs of a potential trend reversal. The token recorded a small 0.46% gain in the last 24 hours, though it remains 11.23% lower over the past week.

The post Avalanche (AVAX) Price : Avalanche Shows Strong Accumulation Despite 14% Monthly Drop appeared first on Blockonomi.