The recent volatility in the price of Avalanche (AVAX) is parallel to both the revival in on-chain data and technical developments. AVAX is currently trading at $9.35 after trading in a narrow range for a long period of sideways trading. The coin, which increased by 3.88 percent in the last 24 hours, is still trading far from the previous cycle peaks.
Technical indicators and price structure attract attention
AVAX has moved within a downward channel in recent months, making successive lower highs and lows. However, in the recent recovery, the price’s attempts to break the resistance zone of this channel have accelerated. Especially if the band formed between $ 9.20-9.50 is exceeded, the technical analysis view may provide support in favor of an upward break. In this case, it is predicted that the first target of the price may be the range of $11 to $13.
Otherwise, if AVAX falls below the $8 level, it may increase the downward pressure in the short term and pull the price towards previous lows. In technical comments, it was reminded that a similar structure occurred in the past and after this structure, the price dropped sharply to the 4-5 dollar range.
In graphic analysis, a rapid retreat of 49 percent was observed after a horizontal consolidation lasting approximately 35 days. Currently, after a similar 50-day horizontal course, a volatile upward or downward movement is expected to come to the fore.
Records on-chain data and stagnation in institutional flows
Looking at on-chain data, it was reported that the number of weekly transactions on the AVAX network increased to the highest level in 2.5 years. With a total of 20.5 million transactions recorded, it appears that there has been an increase in user interest and activity on the platform.
This increase in transaction volume is generally associated with the deployment of new applications in the ecosystem and the increase in the number of users. Strengthening transaction volume on the network, as in the past, can have a positive impact on the price in the medium and long term.
The corporate side, on the other hand, draws a more static profile. Shared ETF data shows that there has been no significant inflow into AVAX-based funds since March 17. This indicates that institutional interest and capital flows are decreasing in the short term.
Despite this revival recorded on the network, the calmness on the corporate side stands out as a factor that suppresses price movements in the short term. A recovery in ETF inflows is expected for investor interest to increase again.
While AVAX is priced at a critical resistance point, the subsequent price movement is expected to be decisive in determining the short and medium-term trend.
