Key Takeaways:
- AVAX trades at $6.55 testing a critical monthly demand zone
- Daily active addresses on Avalanche rose 30% to nearly 119,600
- Analyst The Boss sets upside targets up to $29.97 if support holds
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Avalanche active addresses jump 30% as AVAX tests key support at $6.55
Avalanche's daily active addresses surged 30% to nearly 119,600 even as AVAX trades near a make-or-break support zone.
AVAX traded at $6.55 with a $2.83 billion market cap, testing a monthly demand zone that has historically attracted buying interest during prior downturns.
"The current demand area has held in past downturns, and a successful defense could open the path toward $9.15 and beyond," The Boss, a crypto analyst, said on X.
Daily active addresses on Avalanche rose about 30% to nearly 119,600 over the past week, according to data from MSB Intel. The increase in wallet activity signals growing usage of decentralized applications on the network, even as the token price has remained flat. AVAX's 24-hour trading volume stood at $233.19 million.
If the support zone holds, The Boss identified upside targets at $9.15, $10.85, $14.48, $19.65, $22.78 and $29.97. A confirmed monthly close below the zone would extend the downtrend, the analyst said.
On-Chain Growth vs. Price Stagnation
The divergence between rising network usage and flat price action creates a dynamic that traders are watching closely. Active addresses climbed to approximately 119,600 daily users, a 30% increase from the prior week, per MSB Intel. Such growth typically precedes price appreciation if the trend sustains, though Bitcoin's recent decline has kept the broader crypto market cautious.
Bitcoin's move lower in recent sessions has weighed on altcoins across the board, with traders waiting for clearer directional signals from the largest cryptocurrency before committing capital to riskier positions. AVAX's ability to hold the current support zone while on-chain activity rises could position it for outperformance if Bitcoin stabilizes.
What Comes Next
For AVAX to move higher, buyers must defend the current demand zone through the monthly close. A successful defense would open the path toward the resistance levels outlined by The Boss, starting at $9.15. A breakdown below the zone would likely accelerate selling pressure and push the token toward lower support levels not yet identified by analysts.
The next catalyst for Avalanche will be any protocol upgrade or ecosystem development that converts rising user activity into sustained demand for the AVAX token. As of the latest data, AVAX traded at $6.55 with a $2.83 billion market cap and $233.19 million in 24-hour volume.
This article is for informational purposes only and does not constitute investment advice.
