The charts don't lie: AVAX shows a double bottom pattern on its weekly timeframe, often interpreted as a bullish reversal signal. Trader @Crypto_TheBoss reminds that 'the RSI is currently above the 50 level on the weekly timeframe, indicating that bullish momentum could continue.'
He also notes that 'the MACD line crossed above the signal line, showing a positive divergence that supports a potential trend reversal.'
Volumes increase as resistance is approached, but nothing is guaranteed. The stochastic flirts with the overbought zone and the On-Balance volume has yet to validate the momentum. To this, we add the lack of a clear close above the 50-week moving average.
These mixed signals feed both hope and caution among investors. In such a context, a decisive breakout could unleash a wave of buying, while a sharp rejection would return AVAX to its consolidation channel.
Behind the increase in technical interest, Avalanche shows impressive fundamental progress. Its Total Value Locked has increased by 90% since March, now nearing $1.9 billion. This capital flow is no coincidence: the blockchain has attracted $250 million in tokenized real assets through Janus Henderson funds via Grove. These are heavy institutional flows, rarely driven solely by speculation.
Regarding partnerships, Avalanche plays in the big leagues. Shopify uses it to enable merchants to distribute NFTs directly from their stores. Alibaba Cloud and AWS offer the ability to deploy Avalanche subnets in just a few minutes. These technical choices reinforce the platform's appeal, especially for companies seeking scalability.
Finally, the economic model of AVAX is designed to become increasingly scarce. In 2024, more than 4 million tokens have been burned, reducing the circulating supply. Adding to this is the recent Octane update, which reduced fees on the C-Chain by 43% and introduced a dynamic gas limit adjustment mechanism, resulting in a more competitive blockchain than ever.
If technical signals and fundamentals excite, market catalysts complete the picture. The proposed spot Avalanche ETF by Grayscale is awaiting approval from the SEC. This regulatory caution does not prevent some analysts from anticipating a green light for major altcoins in the coming months.
Meanwhile, AVAX's risk/reward profile intrigues. Still more than 75% below its all-time high of $146, the crypto offers considerable potential leverage if the market takes off strongly. Promising narratives—AI integration, gaming, decentralized finance (DeFi)—are intertwined with a solid technical infrastructure.
According to analyst Centurion, AVAX bounced off its key support at $17.20, validating a potential reversal scenario. A clear crossover above the $36–43 zone on a weekly close would open the door to targets between $72 and $89.
Avalanche has surpassed several technical and fundamental milestones that attract both traders and institutional capital. And the long-term outlook is already exciting some major banks. For Standard Chartered, AVAX could soar and surpass Bitcoin by the end of 2029. A projection that, if materialized, would completely redraw the hierarchy of cryptos.
