AVAX rallies above $11 as network activity surges
Avalanche’s native token, AVAX, has recently regained the critical support level of $11, coinciding with a surge in network activity. This recovery strengthens the bullish outlook, although further resistance must be overcome for the upward momentum to continue.
Data from DeFiLlama shows a significant increase in decentralized exchange (DEX) volume on the Avalanche network, rising from $954 million to $1.136 billion over the past week, a 19.1% increase. Daily DEX volume now stands near $141 million. Similarly, perpetual market activity has also increased, with seven-day volume rising by 20.6% to $169.7 million. Despite this activity, total value locked (TVL) on Avalanche remains stable at around $648 million.
From a technical perspective, AVAX has formed a bullish flag pattern on the daily chart, with the key resistance level at $11.50. A decisive break above this level could propel AVAX toward $13.50, a significant resistance zone since November 2023. However, if AVAX falls below $11 and sustains a hold under that level, the bullish setup could be invalidated, targeting the $10.50-9.75 area.
The rise in trading activity without a corresponding drop in network liquidity is a positive sign. However, price action must confirm this on-chain strength. Clearing the $11.50 resistance is crucial for AVAX to maintain its upward trajectory.