- AVAX forms a bullish double bottom on the weekly chart, backed by ETF hype and the Octane upgrade cutting transaction costs.
- Price is pressing a key resistance with RSI above 50 and MACD in bullish alignment, but overbought signals suggest caution.
- A breakout could open a new rally stage, while rejection may send AVAX back into range-bound trading.
Avalanche (AVAX) has printed a clear double bottom on its weekly chart — a setup traders often see as a strong reversal signal. Despite slipping 1% today, AVAX is holding above $23, staying in focus as one of the trend assets in the current market. Optimism has been lifted by Avalanche ETF chatter and the Octane upgrade, which slashed C-Chain transaction costs by nearly 43%. On top of that, its DeFi ecosystem has expanded to a $1.5 billion TVL over the past year, showing both developer growth and investor confidence.
Resistance Zone Could Define the Next Move
Market watchers note that AVAX is pressing against a key resistance level, one marked by heavy trading activity and increased volume — a sign that bulls are watching closely. The weekly RSI is comfortably above 50, while the MACD has crossed above its signal line, adding to the bullish bias. Fibonacci retracement and extension levels are now acting as roadmaps, pointing toward possible upside targets if the resistance breaks with conviction.
Breakout Potential vs. Short-Term Pullback Risk
Even with these bullish indicators, the Stochastic Oscillator is creeping into overbought territory, hinting at a chance for a short-term cool-off. AVAX is still sitting just below its 50-week moving average, which could either become solid support or a stubborn barrier depending on how this breakout plays out. On-Balance Volume hasn’t fully confirmed the rally yet, so traders are still watching for stronger buyer inflows.
What’s at Stake for AVAX Holders
Analysts agree the next few sessions will be pivotal. A clean breakout above resistance could kickstart a fresh rally phase toward more ambitious targets. But if AVAX fails here, it risks slipping back into sideways price action or even retracing lower to test market conviction. Either way, this is a decision point — and whichever direction it takes may shape Avalanche’s path for the rest of the quarter.
