Avalanche is witnessing substantial growth with a 275% increase in daily transactions since May, averaging 759,000 per day. The number of monthly active addresses has surpassed 2.2 million, driven by increased user engagement from subnet launches, DeFi projects, and gaming integrations. These developments indicate a shift from speculation to genuine utility on the network. Despite this surge, AVAX faces strong resistance between $22.5 and $23.6, a key area marked by Fibonacci retracement levels from its April drop. Currently, AVAX remains within an ascending channel that supports its bullish trend. Nevertheless, the Stochastic RSI has crossed above 80, signaling overbought conditions, which may lead to a brief pullback before a potential breakout attempt. A decisive move above $24.1 could shift market sentiment positively, paving the way for upward momentum.
Recent metrics paint a mixed picture for AVAX. Taker Buy Dominance has surged, indicating strong buying interest, while Large Holder Netflow reports a 45.60% increase over 90 days, suggesting long-term accumulation. Conversely, the 30-day trend shows a steep decline of 53.31%, hinting at profit-taking or outflows among whales. This divergence suggests a divide in strategy, as long-term holders appear optimistic, while short-term traders may be more cautious as prices approach resistance. The open interest on AVAX has risen by 11.37% to $558 million, reflecting growing speculative interest. However, the lack of extreme leverage indicates that traders are proceeding with caution.
Crucially, Binance's Liquidation Map indicates a cluster of long liquidations between $23.3 and $24.5, which presents a significant resistance barrier. If AVAX can surpass this zone, it may trigger short liquidations and propel prices upwards. Failure to do so, however, could result in increased selling pressure. Overall, Avalanche's increase in active users and transactions signals a strengthening of its network fundamentals, yet the current price action must overcome key resistance levels to reflect this progress.
Recent metrics paint a mixed picture for AVAX. Taker Buy Dominance has surged, indicating strong buying interest, while Large Holder Netflow reports a 45.60% increase over 90 days, suggesting long-term accumulation. Conversely, the 30-day trend shows a steep decline of 53.31%, hinting at profit-taking or outflows among whales. This divergence suggests a divide in strategy, as long-term holders appear optimistic, while short-term traders may be more cautious as prices approach resistance. The open interest on AVAX has risen by 11.37% to $558 million, reflecting growing speculative interest. However, the lack of extreme leverage indicates that traders are proceeding with caution.
Crucially, Binance's Liquidation Map indicates a cluster of long liquidations between $23.3 and $24.5, which presents a significant resistance barrier. If AVAX can surpass this zone, it may trigger short liquidations and propel prices upwards. Failure to do so, however, could result in increased selling pressure. Overall, Avalanche's increase in active users and transactions signals a strengthening of its network fundamentals, yet the current price action must overcome key resistance levels to reflect this progress.
