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Avalanche at a Crossroads: Can AVAX Defy Gravity or Plunge Below $18 in 2025?

Avalanche at a Crossroads: Can AVAX Defy Gravity or Plunge Below $18 in 2025?

Author:
Tronweekly
Published:
2025-05-08 03:00:00
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Avalanche (AVAX) faces mounting pressure as markets test its resilience—will it stage a comeback or crumble under bearish momentum?

Technical indicators flash warning signs, but crypto’s never been one to follow the script. Traders brace for volatility while institutional players hedge bets—because nothing says ’trust the process’ like leveraged positions and sleepless nights.

Key factors at play: Network activity trends, competitor L1 adoption, and whether macro conditions finally force crypto to pretend it cares about traditional finance rules. One thing’s certain: If AVAX holds $18, bulls get a narrative. If not? Cue the ’we told you so’ chorus from Wall Street dinosaurs.

AVAX

  • AVAX is consolidating between $19.00 and $19.70 with mixed technical signals and bearish short-term sentiment.
  • Trading volume is surging, up 51.52% in 24 hours, indicating renewed investor interest despite price stagnation.
  • Avalanche’s 2025 outlook strengthens as institutional adoption accelerates through high-profile subnet launches.

Avalanche (AVAX) is now trading at $19.48, registering a slight dip of 0.60% from the previous 24 hours. Yet, its trading volume spiked to $288.95 million, 51.52% higher, indicating renewed speculative behavior. In spite of this short-term volume spike, AVAX has declined by 7.68% in the last week, reflecting ongoing short-term bearishness.

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Technical indicators for all timeframes paint a mixed but cautious picture. On the 1-hour chart, there are far more sells than buys (28 to 15), although RSI at 36.24 is indicating AVAX at near-oversold levels. MACD histogram is signaling fading bearish momentum, whereas Bollinger Bands are indicating potential recovery from the current levels.

The 4-hour chart is also following the same trend with similar bearish indications and RSI falling to 33.40, again indicating a possible technical rebound.

Key resistance is at levels of $19.70 to $20.25, levels AVAX has persistently failed to overcome. Support is strongly set at levels of $19.00 to $18.70. Breaking above $19.70 might explain a short-term reversal to bullishness, whereas a fall below $19.00 will confirm the prevailing bearish trend, targeting $18.50.

AVAX may reach $42.96 by 2025

Experts believe that AVAX is at a crossroads. If support at $19.00 is resisted both psychologically and from a technical perspective, then the short-term recovery to the $20.00 to $20.50 level is still possible. However, continuous weakness might drive prices to below-$18.50 levels.

AVAX has the potential to reach above $42.96 by year-end 2025, potentially revisiting its all-time high of $146.22 under bullish conditions. This forecast might appear to be positive, but it is supported by tangible developments in Avalanche’s institutional applications.

Avalanche shifts from DeFi to institutional solutions

Avalanche’s move into real-world finance and enterprise solutions in 2025 is proving to be critical. A set of institutional-grade applications, such as Nonco, Watr, SecondSwap, Axiym, and Inversion, have gone live on the Avalanche network, taking advantage of its subnet topology for regulatory compliance, speed, and customizability.

Nonco, supported by VanEck, is revolutionizing the foreign exchange market with on-chain liquidity and stablecoin automation. Watr is introducing transparency and ESG compliance to commodity trade, while Axiym is digitizing cross-border settlements. Inversion is onboard-ing conventional businesses directly to blockchain infrastructure.

These trends herald a paradigm shift for Avalanche from being a DeFi-oriented chain to its development of an all-encompassing institutional ecosystem. With similar intent from rivals like Ethereum and Solana, Avalanche’s custom subnet approach and growing real-world integrations might prove to be the deciding factor for 2025.

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