AVAX Bulls Charge—But Can Momentum Fuel the Next Leg Up?

AVAX’s recent surge has traders buzzing—yet crypto’s fickle gods demand more than hype to sustain rallies. Here’s the breakdown.

The Bull Case: Speed, Scalability, and Snowmen

Avalanche’s sub-2-second finality and eco-friendly rep give it an edge over gas-guzzling rivals. Institutional nods don’t hurt either—though Wall Street’s ’blockchain experts’ still can’t explain PoS without cue cards.

Make-or-Break Levels

Watch the $50 psychological barrier. Flip that to support, and we’re eyeing the 2024 ATH. Fail? Enjoy the ’long-term hold’ copium with your bags.

Crypto winter taught us this: Every ’unstoppable’ rally meets gravity eventually. AVAX’s tech stacks up—but in a market where memes move needles, even the slickest chains dance to speculation’s tune.

Source: TradingView

Whale inflows rise as large holders accumulate near key resistance

Whale behavior has shifted this week, with netflows rising by +191.9% over the last 7 days. This accumulation coincided with AVAX pressing against a major resistance zone – A sign of greater whale interest. 

While it’s unclear whether this might be speculative positioning or long-term conviction, it does support bullish momentum. 

If inflows continue, they could provide the strength needed for a breakout. However, if accumulation slows or reverses, bulls may lose momentum. 

Source: IntoTheBlock

Retail buyers dominate as mid-tier transactions increase

Retail activity has continued to lead too. Transactions between $1k–$10k jumped by +282.63%, while $100–$1k increased by +167.79%.

Higher-value brackets above $10k remained mostly flat or negative, confirming the absence of strong institutional involvement. 

Wallet concentration data supported this – Retail holdings ROSE +12.93% over the past 30 days, while whales grew just +4.38%. Simply put, the rally’s momentum has been largely retail-driven. 

While such an influx does fuel short-term moves, it may lack the depth to sustain higher price levels unless larger players join in.

Source: IntoTheBlock

 Speculation intensifies as derivatives volume, long bias surge

AVAX’s derivatives activity has been heating up too. Volume rose +21.64% to $962.72M, and Open Interest climbed by +2.66% to $576.53M – Showing a hike in trader anticipation. 

Meanwhile, Binance’s data revealed that 75.08% of traders were long, creating a long/short ratio of 3.01. Such an aggressive skew lends fuel to bullish sentiment, but also elevates risk. 

If AVAX fails to break $25, over-leveraged long positions could unwind rapidly. Therefore, while the data reflected optimism, traders should stay cautious — High expectations without confirmation often leads to volatility spikes and liquidation-driven drops.

Source: Coinglass

Does Avalanche’s $240B RWA deal translate to real network growth?

Avalanche has officially announced a $240 billion real estate tokenization initiative, in collaboration with Bergen County and other NJ municipalities. 

This marks the largest blockchain deed initiative in U.S history, with the aim being to digitize over 370,000 property records. 

While this announcement has boosted ecosystem sentiment, on-chain adoption has been soft. New addresses dropped by -24.77%, and active addresses fell -18.58% over the past week. 

Therefore, while the deal may be a major milestone for Avalanche’s RWA narrative, the lack of user growth means sentiment has not yet translated into actual network activity. 

Source: IntoTheBlock

Is AVAX ready to break out or is it nearing exhaustion?

AVAX flashed promising signals from whale inflows, retail growth, and rising derivatives interest. However, the resistance at $25 remains a decisive barrier. 

Without confirmation from volume, user activity, and institutional support, upside remains uncertain. If the breakout fails, overexposed long positions may trigger sharp pullbacks. 

Therefore, the price reaction at this level will determine whether AVAX reclaims momentum or stalls once again.