- Avalanche sees a 66% increase in blockchain transactions this week.
- $AVAX fails to break through the $26.50 resistance for multiple attempts.
- Avalanche network is experiencing a rise in on-chain activity driven by US GDP data.
Avalanche ($AVAX) struggles near $26.50 resistance, while blockchain transactions surge by 66%, showing strong market activity. According to Martinez’s analysis, the cryptocurrency is currently forming a channel pattern, with price movements reflecting a series of lower highs.
The repeated rejection at $26.50 indicates a lack of strong bullish momentum, and this ongoing struggle to break through critical resistance has left the asset vulnerable.Â
As the price fails to breach this zone, $AVAX is now testing the $23.75 support level. Should this support hold, there is potential for a rebound toward the $25.11 resistance. However, further downsides are possible if $AVAX fails to maintain this support.
Transaction Growth Amid Price Volatility
Despite the price struggles, Avalanche’s blockchain has seen a surge in activity. The network recently reported a 66% increase in transactions, reaching 11.9 million this week.Â
This growth is particularly noteworthy as it coincides with positive on-chain data influenced by the release of US GDP figures. While the token faces technical challenges, the increase in transaction volume suggests heightened interest in the Avalanche ecosystem.
However, active addresses have seen a decline of 13%, signaling some disconnect between transaction activity and user growth.
Key Support and Resistance Levels
Looking ahead, traders are eyeing the critical support and resistance levels that will dictate $AVAX’s next move. The $23.75 level is a crucial support zone, with the potential for a rebound toward $25.11 if the price stabilizes. A further push upward could see $AVAX test $26.61.Â
However, a break below $22.71 would signal a bearish trend, possibly leading to a deeper drop toward the $22.40 support. Traders are closely monitoring the price action for signs of either a reversal or a continued downtrend as $AVAX navigates these key levels.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
