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- AVAX is battling to maintain its position above the $25 mark amid recent market volatility.
- A notable increase in daily active addresses suggests growing user engagement on the Avalanche network.
- The network faces significant resistance between the $27 and $28 price levels, which could pose challenges for upward momentum.
Over the past seven days, AVAX has experienced a decline of approximately 16%, bringing its market capitalization down to $11.16 billion. This downturn has placed Avalanche as the 12th largest cryptocurrency by market cap. The price movement has been characterized by a falling channel pattern, with AVAX losing more than half its value in the last 55 days.
On a positive note, there’s been an uptick in daily active addresses on the Avalanche network, surpassing 250,000—the highest since May 2023. This surge indicates increased user engagement, which could be a bullish signal for AVAX.
Navigating an Avalanche in Price Action
Despite the encouraging on-chain activity shown on the CoinGecko chart, AVAX faces significant resistance between the $27.38 and $28.17 price range, where approximately 11.41 million AVAX tokens are held. Overcoming this barrier is crucial for any potential upward movement. If the token manages to break through, it could target the 200-day EMA at $34.34, representing a potential 28% gain. However, failure to surpass this resistance might lead to a decline towards the $20 support level.
Network Growth: Partnerships and Innovations
Avalanche continues to expand its ecosystem through strategic partnerships and technological advancements. Collaborations with platforms like Tixbase and Passolig are integrating blockchain technology into Turkey’s ticketing industry, showcasing Avalanche’s versatility and real-world application.
Avalanche (AVAX) has been navigating a turbulent market landscape recently. After a significant drop over the past week, the token is currently trading around $25.88. According to CoinSpeaker, there’s a glimmer of hope as on-chain activity shows signs of a potential rebound.
Looking Ahead: Cautious Optimism
While the recent increase in on-chain activity and strategic developments are promising, AVAX’s price action remains at a critical juncture. Traders and investors should monitor key resistance levels and overall market sentiment closely. A successful breach of the current resistance could pave the way for a recovery, while failure might result in further declines. As always, conducting thorough research and exercising caution is essential in navigating the volatile cryptocurrency landscape.
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