This week, Avalanche ($AVAX) has faced difficulties in breaking through the $26.50 resistance level, despite a significant increase in transaction activity by 66%.
Price Struggles and Strong Resistance
Avalanche ($AVAX) has made several attempts to break through the $26.50 resistance level but has encountered repeated rejections, indicating a lack of strong bullish momentum. Analysis shows that the cryptocurrency is forming a channel with a series of lower highs. The repeated failures at this level have left the asset vulnerable.
Transaction Growth Amid Price Volatility
Despite price struggles, Avalanche’s blockchain has reported a 66% increase in transaction volume, reaching 11.9 million transactions this week. This growth coincides with positive on-chain data influenced by the release of US GDP figures. However, the number of active addresses has declined by 13%, indicating some disconnect between transaction activity and user growth.
Key Support and Resistance Levels
Looking ahead, traders are watching critical support and resistance levels that will dictate the next move for $AVAX. The $23.75 level is a crucial support region, with the potential for a rebound towards $25.11 if the price stabilizes. A break below $22.71 could indicate a bearish trend, possibly leading to further declines toward the $22.40 support level.
Despite the increase in transaction activity for Avalanche, the price situation remains tense. Traders are awaiting clarity in future movements of $AVAX, monitoring key support and resistance levels.
