Avalanche (AVAX) Flips the Script: Bullish Reversal Targets $120 Surge

Avalanche just flashed its strongest buy signal in months—and the charts are pointing toward a dramatic climb.

The Technical Turnaround

Forget the recent slump. AVAX's price action just carved out a classic reversal pattern, breaking decisively above a key resistance level that had capped rallies for weeks. This isn't a minor blip; it's a structural shift in market sentiment. Momentum indicators, which had been languishing in bearish territory, have snapped back with conviction, suggesting the selling pressure has been fully absorbed.

Why $120 is Now in Play

The initial breakout sets a clear trajectory. With the reversal confirmed, the path of least resistance now points toward the $120 zone—a target derived from measuring the magnitude of the preceding consolidation. Each minor pullback is likely to meet fresh buying interest, creating a series of higher lows on the way up. It's a textbook case of trapped shorts fueling a squeeze.

The Engine Behind the Move

This isn't happening in a vacuum. Activity on the Avalanche network has been quietly building, with developers deploying new applications and total value locked (TVL) showing resilience. The chain's signature speed and low costs continue to attract builders, even when headlines focus elsewhere. Sometimes, the best time to build is when the traditional finance crowd is busy chasing the next shiny, over-hyped stock—their loss.

The narrative has flipped. Avalanche isn't just recovering; it's positioning for a run that could redefine its recent trading range. All eyes are now on that $120 target.

Avalanche Approaches Key Support Zone

According to crypto analyst Profit Demon, AVAX appears positioned near the lower boundary of a symmetrical triangle formation visible on the weekly chart. Such patterns often precede decisive moves once price direction is confirmed. 

A sustained rebound from this support zone could open the door to higher valuation targets, with projections ranging from $17.50, $30.00, and $55.00, to more ambitious levels at $80.00 and $120.00. Market participants are watching closely for confirmation through volume expansion and broader sentiment shifts.

Avalanche Expands Into Abu Dhabi

Avalanche has also taken a strategic step beyond price action by establishing the Avalanche DLT Foundation within the Abu Dhabi Global Market. The new entity is designed to support long-term Web3 adoption while strengthening enterprise and public-sector collaboration across the Middle East and North Africa. 

ADGM’s dedicated framework for distributed ledger foundations offers regulatory clarity that aligns with decentralized governance models, allowing blockchain organizations to operate transparently while remaining compliant. This positioning provides Avalanche with a stable legal base to coordinate builders, partners, and government stakeholders under a unified structure.

Also Read | Avalanche (AVAX) Eyes $20 Zone After ETF Boost and Technical Breakout

Avalanche C-Chain Hits 64.3 Million Transactions

Operational data further underscores improving fundamentals across the Avalanche ecosystem. The network’s C-Chain recorded 64.3 million transactions in November, concluding a six-month expansion that significantly lifted baseline usage. Monthly activity has risen steadily since August, when transactions stood NEAR 35.8 million, before accelerating through early autumn. 

December has begun at a comparable pace, with more than 20 million transactions logged in its opening days. If current trends persist, analysts expect another month exceeding 65 million transactions, reinforcing confidence that Avalanche’s recent growth phase is translating into sustained network engagement.

This convergence of technical structure, regulatory positioning, and on-chain performance places Avalanche at a notable juncture. While broader digital-asset markets remain sensitive to macroeconomic signals, projects combining compliance readiness with measurable usage are increasingly favored by institutional observers. 

The coming weeks will test whether volume-led price stability and regional expansion efforts can convert Optimism into durable value creation for developers, partners, and token holders alike, as the network continues refining its global growth strategy. 

Any sustained upside will ultimately depend on execution, liquidity conditions, and continued user adoption across decentralized finance, enterprise pilots, and emerging government use cases within Avalanche’s expanding international footprint in the year ahead.

Also Read | Avalanche Foundation Launches DLT Hub: Could it Boost the AVAX to $86