After a three-month downtrend, the Avalanche (AVAX) community is eyeing a potential bullish reversal, driven by ecosystem developments and increasing adoption.
Traders Eye Key Support Levels for AVAX
In a recent post on X (formerly Twitter), trader Marzell highlighted that AVAX is testing a crucial support zone between $15 and $20. He noted that if the price holds above this level and closes the week above $30, a strong rebound could follow, potentially pushing AVAX toward $43.84, with further targets at $58.06 and $80.03.
Meanwhile, trader Kaleo shared a chart suggesting AVAX is in an accumulation phase, mirroring November 2023’s pattern, which led to a 125% price surge. Kaleo hinted that a similar bullish breakout could happen again.
As of March 7 (Asian time), AVAX was trading at approximately $20.64, boasting a market cap exceeding $8.5 billion and a 24-hour trading volume of $538 million. However, the token remains 85.8% below its all-time high of $144.96, recorded in November 2021. Despite its 61% price drop from December 9’s $54.18 high, multiple developments could help support its recovery.
Multiple Positive Catalysts in Play
1. White House Crypto Summit Speculation
Avalanche CEO Emin Gün Sirer hinted at a potential attendance at the White House Crypto Summit, fueling speculation that AVAX could be included in the U.S. Strategic Crypto Reserve. With pro-crypto sentiment growing among policymakers, investors speculate Avalanche’s U.S.-based development by Ava Labs could align with Trump’s “Made in USA” initiative.
2. Balancer V3 Integration in Avalanche’s DeFi Ecosystem
The Avalanche community is voting to bring Balancer V3 to Avalanche, which would enhance DeFi liquidity tools and trading strategies. The proposal, which ends on March 11, 2025, could further strengthen Avalanche’s DeFi positioning.
3. Growing Presence in Real-World Asset Tokenization
Avalanche continues to expand in real-world asset tokenization, now ranking 7th in total DEX volume according to DeFiLlama, with volume surging 18% to $1.345 billion over the past week. Additionally, an Indian town recently adopted Avalanche’s blockchain to tokenize over 700,000 land records, underscoring real-world utility.
AVAX Price Analysis: Bearish Signals Remain
Despite bullish sentiment, technical indicators suggest continued downward pressure:
- AVAX has fallen back under the descending trendline formed since Jan. 18, failing to break out of its bearish structure.
- MACD and signal lines remain closely together, indicating ongoing consolidation.
- Aroon Down at 78.5% and Aroon Up at 0% suggest strong selling pressure and a dominant downtrend.
At press time, AVAX is down 6.5% in 24 hours, trading at $20.5 per coin. While fundamental catalysts provide long-term optimism, technical indicators suggest continued downside risk unless bullish momentum builds in the coming weeks.
