Avalanche Daily Chart Confirms Breakout—100%+ Bullish Run Ahead?

Key Insights:

• AVAX breaks out of a long-term wedge pattern with a projected upside target between $37 and $41.
• Daily active users surged over 680% in 30 days, showing rapid network growth and increased activity.
• Stablecoin transfer volume hits $1.3B daily, suggesting fresh capital inflow and higher transaction demand.

The daily chart for Avalanche (AVAX) has broken a long-term descending wedge pattern, which has triggered expectations for a bullish trend. Apart from the growth in daily active users and stablecoin transfers, technical and on-chain data are converging to support the case for further upside movement.

Avalanche Breaks Out of Long-Term Pattern

Avalanche has broken out above a long-term descending wedge pattern on daily chart, which indicates the possibility of an upward trend. The descending broadening wedge pattern had been in place for months, with prices falling within wider boundaries.

However, trading has pushed AVAX over the upper resistance at $22.50, meaning the breakout has been confirmed.

According to the chart analysis by Clifton_fx, this possible breakout might generate a bullish reversal from 100% to 150% targeting prices at $37–$41. The 1-day candle broke out above the resistance level with a strong bullish body, indicating that the buyers are taking control of the market.

Daily Active Users Show Strong Growth

Meanwhile, activity levels in the Avalanche network have skyrocketed in the last month. From the blockchain data, daily active users (DAUs) have soared to 251,140, a 554% increase from the 30-day average. At the time of writing, the daily active users were 174,170, an increase of 44.19% from the previous day.

This sharp growth isn’t isolated. DAUs in the last week had an impressive 755.5% growth, which was from a much smaller base to 29,360. In the last 30 days, daily active users increased from 32,150 to 251,140, a phenomenal 681.28% increase. DAUs have increased more than four times from a year ago.

This massive rise in the daily active users is used to explain the recent price changes. Higher transaction volume is often a consequence of increased user activity, which builds demand.

More user activity may increase AVAX’s network value and provide more support for upward price movement. Such growth indicates more usage, which might contribute to stabilising price levels in the long run.

On-Chain Metrics Support Momentum Shift

The funding rate is a measure to determine the sentiment of traders who are involved in futures trading. Funding rates in the positive range reflect long traders paying shorts, thus an indication of increasing bullish sentiment. On the contrary, negative rates indicate trader pessimism.

The AVAX funding rate chart weighted by open interest, shows a distinct shift. Most of the graph in red was shown from mid-February to April, which is associated with negative funding rates.

Market prices declined together with the shift to red funding areas. By late April, the chart has more green, meaning that traders are now being funded instead of paying it out.

Additionally, the daily stablecoin movements on the Avalanche C-Chain are now at $1.3 billion, the highest for the past three months. The number of stablecoin transfers reflects the flow of capital both flowing into and around the network.

Increased stablecoin transfers at a constant rate are usually an indication that users are about to conduct trading or investing activities.

Transfer volume on the Avalanche C-Chain remained between $600 million and $1 billion between March and April. Effective in May, volumes began to rise, and daily totals occasionally exceeded $1.3 billion.

The rise in stablecoin volume means that investors are investing their money, which may affect the upward trend for AVAX.

Short-Term Indicators Show Strong Bullish Signs

On the 4-hour chart, AVAX is staying in the upper part of the cloud indicates short-term momentum is bullish.

MACD’s line is above the signal line at 1.11 to 1.05, indicating a bullish momentum trend. The green histogram though, shows early signs of flattening, which could indicate a short cooling off in momentum before the next wave.

Possible resistance spots are $26 and $28, but the breakout of daily resistance is a strong technical signal for aggressive bullishness. The bullish outlook will be supported if AVAX keeps a price above $22.50.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.