AVAX Eyes a Breakout Above Key Resistance

Altcoins are shining at the moment. After Ethereum and a few other headliners, it’s Avalanche’s crypto’s turn to take the spotlight. Combining encouraging technical signals, fundamental growth, and institutional catalysts, AVAX finds itself at a pivotal moment. Between the tension of a key resistance and the enthusiasm of its supporters, everything seems ready for a possible takeoff.

In Brief

• Avalanche shows a double bottom, RSI above 50 and MACD in bullish crossover.
• Its TVL rises by 90%, nearing 1.9 billion dollars since March.
• The Octane update reduces fees on the C-Chain by 43%.
• AVAX remains 75% below its all-time high, offering catch-up potential.

A Double Bottom Putting Pressure on Sellers

Charts don’t lie: AVAX shows a double bottom pattern on its weekly unit, often interpreted as a bullish reversal signal. Trader @CryptoTheBoss notes, "The RSI is currently above the 50 level on the weekly timeframe, indicating that upward momentum may continue_." He also specifies that "The MACD line has crossed above the signal line, showing positive divergence which supports a possible trend reversal." Volumes increase as resistance approaches, but nothing is certain. The stochastic flirts with the overbought zone and the On-Balance Volume hasn’t yet validated the momentum. Added to this is the lack of a clear close above the 50-week moving average. These mixed signals fuel both hope and caution among investors. In such a context, a conviction breakout could release a buying wave, while a sharp rejection would push AVAX back into its consolidation channel.

When Avalanche’s Crypto Attracts Capital and Tech Giants

Behind the technical surge of interest, Avalanche shows impressive fundamental progress. Its Total Value Locked (TVL) has jumped 90% since March, now nearing 1.9 billion dollars. This influx of capital is no accident: the blockchain attracted 250 million dollars of real tokenized assets through Janus Henderson funds via Grove. These are significant institutional flows, rarely driven by mere speculation. On the alliances side, Avalanche plays in the big leagues. Shopify uses it to allow merchants to distribute NFTs directly from their stores. Alibaba Cloud and AWS offer the ability to deploy Avalanche subnets in minutes. These technical choices enhance the platform’s attractiveness, especially for companies seeking scalability. Finally, the AVAX economic model is designed to become increasingly rare. In 2024, over 4 million tokens were burned, reducing circulating supply. Add to this the recent Octane update, which decreased C-Chain fees by 43% and introduced a dynamic gas limit adjustment mechanism, resulting in a more competitive blockchain than ever.

Between ETFs, Tokenomics and Bullish Ambitions: The AVAX Equation

While technical signals and fundamentals excite, market catalysts complete the picture. The Grayscale-proposed Avalanche spot ETF is still awaiting SEC approval. This regulatory caution doesn’t stop some analysts from anticipating a green light for major altcoins in the coming months. Meanwhile, the risk/reward profile of AVAX intrigues. Still over 75% below its all-time high of $146, the crypto offers considerable leverage potential if the market firmly recovers. The strong narratives— AI integration, gaming, decentralized finance (DeFi)— mesh with solid technical infrastructure. According to analyst Centurion, AVAX bounced off its key support at $17.20, validating a potential reversal scenario. A clear breakthrough of the $36–43 zone on a weekly close would open the way to targets between $72 and $89.

Key Highlights to Remember

• +90%: Avalanche TVL increase since March 2024;
• $250M: influx of real tokenized assets via Grove;
• 43%: C-Chain fee reduction thanks to the Octane upgrade;
• 4M AVAX burned in 2024, reducing circulating supply;
• 75%: current distance from the $146 ATH.
Avalanche has crossed several technical and fundamental milestones attracting both traders and institutional capital. Long-term prospects already excite some major banks. For Standard Chartered, AVAX could skyrocket and surpass Bitcoin by the end of 2029. A projection that, if realized, would completely redraw the crypto hierarchy.

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Frequently Asked Questions (FAQ)

Q: What are the key technical indicators suggesting a potential breakout for AVAX? A: The article highlights a double bottom pattern on the weekly chart, an RSI above 50, and a bullish crossover on the MACD as key technical indicators pointing towards a potential trend reversal and upward momentum for AVAX. Q: How has Avalanche's Total Value Locked (TVL) changed recently? A: Avalanche's TVL has seen significant growth, increasing by 90% since March and nearing $1.9 billion. Q: What impact has the Octane update had on the Avalanche network? A: The Octane update has reduced fees on the C-Chain by 43% and introduced a dynamic gas limit adjustment mechanism, making the blockchain more competitive. Q: What makes AVAX attractive in terms of its price relative to its all-time high? A: AVAX is currently trading approximately 75% below its all-time high of $146. This significant distance from its peak suggests considerable catch-up potential if the market recovers strongly. Q: What are some of the major partnerships or integrations Avalanche has secured? A: Avalanche has partnered with companies like Shopify for NFT distribution and benefits from integrations with Alibaba Cloud and AWS, which allow for the rapid deployment of Avalanche subnets. Q: What is the significance of the institutional investment mentioned in the article? A: The article mentions a $250 million influx of real tokenized assets via Grove, facilitated by Janus Henderson funds. This signifies significant institutional capital entering the Avalanche ecosystem, indicating a strong belief in its long-term potential beyond speculative trading. Q: What are the potential price targets for AVAX if it breaks through its key resistance levels? A: According to analyst Centurion, a clear breakthrough of the $36–$43 zone on a weekly close could open the way for AVAX to reach targets between $72 and $89. Q: What future potential does Avalanche hold according to major financial institutions? A: Standard Chartered has projected that AVAX could "skyrocket and surpass Bitcoin by the end of 2029," indicating a highly optimistic long-term outlook from traditional financial institutions.

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Crypto Market AI's Take

Avalanche (AVAX) is demonstrating a compelling combination of technical strength and fundamental utility, positioning it as a noteworthy altcoin in the current market landscape. The double bottom formation, coupled with positive RSI and MACD signals, suggests a strong possibility for a bullish reversal. Our AI analysis indicates that the substantial increase in TVL, driven by institutional inflows like the $250 million from Janus Henderson, points to growing confidence in the Avalanche ecosystem. Furthermore, the continuous development, exemplified by the Octane update reducing C-Chain fees, enhances its appeal for developers and users alike. As the crypto market continues to evolve, platforms like Avalanche, with their focus on scalability, partnerships with major tech players like AWS and Alibaba Cloud, and tokenomics designed for scarcity, are well-positioned for growth. For investors seeking exposure to promising altcoins, AVAX presents an attractive opportunity, especially considering its current trading price significantly below its all-time high, offering substantial upside potential. We track these developments closely to provide users with the most up-to-date insights on assets like AVAX.

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More to Read:

• The Future of Cryptocurrency Trading: AI Bots vs. Human Traders
• Understanding Avalanche Subnets: The Key to Scalability
• Navigating the Bull Market: Essential Strategies for Altcoin Investors

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Source: AVAX Eyes a Breakout Above Key Resistance on August 12, 2025