AVAX Builds Momentum With $35 Target in Sight Amid Resistance

• Avalanche sees a 66% transaction surge to 12M, despite a 13% dip in active addresses weekly.
• AVAX faces key resistance at $24–$27; a breakout could signal the next big move.
• The derivatives market shows traders holding longs with open interest steady at $877 million.

Avalanche’s AVAX token is cooling off after a sharp three-week climb. Since early August, the coin surged nearly 25%, rallying from $21.34 to a peak of $26.74. That zone, however, has proved a tough ceiling, echoing resistance levels that have held since the start of the year.

At press time, AVAX trades at $23.38, down 3.64% over the past 24 hours and slipping 7% for the week. Still, the broader trend remains intact. On the monthly chart, AVAX holds a slim but essential 1% gain, keeping bullish momentum alive despite the latest pullback. The modest retracement suggests investors are testing support rather than abandoning the rally, leaving AVAX’s longer-term sentiment intact.

Network Momentum Builds

Avalanche’s network is showing fresh signs of momentum, with transaction activity climbing even as market prices cool. Data reveals that Avalanche handled nearly 12 million transactions recently, a 66% surge that highlights growing engagement within the ecosystem.

Active addresses have dipped 13% overall on a weekly timeframe. While overall wallet activity has dipped, the surge in transactions points to stronger usage among the most active participants.

Key Levels Define AVAX’s Next Big Move 

Avalanche’s AVAX token appears to be entering a critical stage as the price action consolidates within a symmetrical triangle, a structure that has held its ground since last year. The token is now trading below the $24–$27 resistance zone, which aligns with the 23.6% Fibonacci retracement level.

This makes it a significant barrier that holds the key to the next trend. In the wake of its fall, the AVAX token is likely to garner retracement towards the $18–$15 price range. This zone has historically provided support and could act as a buy area for those eyeing a rebound.

A firm close above $27 would strengthen the bullish case, paving the way toward the $35 level, which coincides with the 50% Fibonacci level. With a more aggressive rally, the $47 and $55 targets could come into view. The technical picture shows quietly building momentum, and the next move might be notable. 

The risk to the downside, however, remains quite visible. A break below the lower edge of the triangle and a close under the $14.65 support level—the 0% Fibonacci retracement—would indicate a trend reversal and deeper losses. 

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Derivatives Market Shows Strong Confidence

Avalanche’s derivatives market is showing strong confidence, and its traders are showing minimal reluctance to support the bullish thesis. The OI-weighted funding rate is at 0.0087%, indicating that longs are paying a premium to shorts to keep positions open.

This willingness to cover extra costs reflects the conviction that price momentum is not yet exhausted and that further gains could be ahead. That sentiment is reinforced by open interest, which currently sits at $877.51 million.

Although just below the recent peak of $962.87 million on August 24, open interest in AVAX futures remains elevated, signaling strong participation and liquidity. Traders are keeping contracts open rather than closing them, a clear sign of confidence in the token’s direction.

Conclusion

The future of Avalanche is at a crossroads, influenced by a combination of on-chain expansion, technical trends, and derivatives strength. Although the price has recently been experiencing some pullbacks, the network activity and gradual buildup indicate that the belief in AVAX is far from fading. As traders remain steadfast and involvement remains elevated, Avalanche is poised to make its next substantial step, which may shape its path in the short term.