AVAX, the native cryptocurrency of the Avalanche Network, surged 4.5% to $18.7 during Wednesday’s U.S. trading session. This upward movement aligns with the broader market recovery, as Bitcoin climbed to $109,500 after multiple rejections. The buying pressure intensified as the Avalanche network experienced a significant rebound in network activity. Could this signal an imminent rally to $25?
Avalanche Network Activity Defies Price Correction
Over the past three weeks, Avalanche’s price underwent a sharp correction, dropping from $22.6 to $18.65—a 17.3% loss. Geopolitical tensions in the Middle East and a broader market downturn contributed to this decline.
Despite the price drop, Avalanche’s active addresses surged 176%, jumping from 142,720 to 392,500. This spike reflects heightened on-chain activity, potentially driven by increased decentralized application (dApp) usage, staking, or new protocol adoption.
New addresses also grew by 40%, from 196,500 to 273,000, indicating a strong influx of new users. This growth underscores Avalanche’s expanding adoption and suggests that underlying fundamentals remain robust.
👉 Why Avalanche’s rebound could signal a major rally
AVAX Price Poised to Break Multi-Month Downtrend
Since mid-May 2025, AVAX has followed a steady downtrend, forming lower lows and lower highs—a classic falling channel pattern. Typically, such patterns persist until a breakout occurs, signaling a potential trend reversal.
Currently trading at $18.64, AVAX hovers just **6% below** the overhead resistance. A breakout above this trendline could trigger bullish momentum, pushing the price past $22.67 resistance toward $27.
If sellers maintain pressure at the channel resistance, the correction may extend into late July.
Key Takeaways
- Active addresses surged 176%, signaling strong network activity despite price decline.
- New addresses grew 40%, reflecting rising adoption.
- A breakout above the falling channel resistance could propel AVAX toward $25–$27.
👉 How to capitalize on Avalanche’s next major move
FAQ
What caused Avalanche’s recent price drop?
Geopolitical tensions and a broader market correction contributed to AVAX’s 17.3% decline over three weeks.
Why is network activity rising despite the price drop?
Increased dApp usage, staking, and new protocol adoption are likely driving higher on-chain engagement.
What price target could AVAX reach if it breaks resistance?
A breakout could push AVAX past $22.67 toward $27, marking a potential 45% upside from current levels.
Conclusion
Avalanche’s rebound in network activity suggests strong fundamentals, making a price recovery likely. Traders should watch for a breakout above the falling channel resistance, which could confirm a bullish reversal.
For strategic trading insights, explore 👉 Avalanche’s breakout potential.
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