Avalanche ($AVAX ) is regaining market attention following a sharp uptick in user activity and a short-term price surge. The smart contract platform’s native token rose nearly 8% in the past 24 hours, peaking at $20.90 before stabilizing at $20.80 as of early Wednesday. This move comes amid a dramatic increase in monthly active wallets, which have surged more than 400% since May, surpassing 2.2 million users.

According to Avalanche’s official update, the spike in on-chain activity has been driven by new use cases and apps such as The Arena, the rollout of MapleStory Universe Layer-1, and growing DeFi liquidity across the network.

Despite the price jump, AVAX’s daily trading volume dropped over 35%, currently hovering around $306 million. This divergence between price and volume may suggest the market is still waiting for stronger confirmation of a sustained move.

Technical Momentum Builds, but Key Resistance Looms

$AVAX is also showing signs of a bullish reversal on the technical front. The token recently rebounded from the $19.16 support zone, a level aligning with the 1.618 Fibonacci extension—a key area for trend reversals. In the short-term 4-hour chart, the Relative Strength Index (RSI) stands at 58.16, indicating growing bullish momentum without yet signaling overbought conditions.

Meanwhile, the MACD has flipped into positive territory, supported by expanding green histogram bars, signaling rising upward pressure. Avalanche’s BBPT (Bollinger Band Price Trend) is now favoring buyers, though the Chaikin Money Flow remains slightly negative at -0.11, implying that strong capital inflows have yet to materialize.

AVAX now faces near-term resistance levels at $21.75 and $22.65, with a more significant ceiling at $23.35. A decisive break above these levels, particularly with rising volume, could signal the start of a broader uptrend.

On-Chain Growth Outpaces Market Reaction

With its user base expanding rapidly and DeFi activity picking up, Avalanche appears to be in the early stages of a build-up phase. While trading volume remains a concern, the underlying fundamentals suggest that AVAX may be setting the stage for a more sustained rally—pending confirmation from price action and capital inflows.

As it stands, Avalanche’s fundamentals are heating up. The question is whether price will follow.

#AVAX #NXPC