Is $41 the Key Support for AVAX’s Recovery?

Avalanche (AVAX) Price Tests Critical $41 Support Zone

Avalanche (AVAX) faced a significant retracement as it tested the $41 support level. According to on-chain data, approximately 150,000 wallet addresses hold 8.93 million AVAX tokens at this price point, underscoring its importance as a critical support zone.

AVAX Price and Wallet Distribution

Data from IntoTheBlock reveals that the $41 level acts as a major base for AVAX, attracting significant demand from buyers over the years. The high concentration of tokens held at this level plays a pivotal role in influencing AVAX’s price volatility patterns.

A breakdown below this support could intensify selling pressure, potentially shifting the short-term bullish outlook into bearish territory. Conversely, holding this level could signal a potential rebound for AVAX.

Avalanche’s Bullish Outlook for 2025

InvestingHaven has identified key Fibonacci retracement zones that support a bullish case for AVAX by 2025:

• $32.43 (38.2% Fibonacci retracement): A crucial support level that strengthens the case for long-term growth.
• $112.24 (2025 target): An ambitious price target if AVAX maintains upward momentum and avoids revisiting the $32.43 level.

A break below $32.43 could undermine the bullish trajectory, while sustained momentum could make the $112.24 target achievable, presenting high potential for investors.

AVAX Faces Key Resistance and Support Levels

Recent analysis shows AVAX trading near its support levels with resistance and targets outlined as follows:

• Support: $41.10
• Resistance Levels: $48.29, $54.40, and a long-term target of $65.00

Technical indicators suggest mixed signals:

• Accumulation/Distribution Line: 10.31 million, indicating ongoing inflows but with declining intensity.
• RSI: 49.79, down from 69.41, signaling fading buying pressure but no oversold conditions.

If buyers defend the $41.10 support, AVAX could consolidate and rally to $48.29. Failure to hold this level could open doors to a further downside, with $19.80 as a long-term support level.

AVAX Futures Open Interest Surges Amid Price Rally

The open interest for AVAX futures peaked above $600 million, with projections pointing toward $700 million by December. This surge corresponded with a price increase to $70, fueled by rising demand and market speculation.

Highlights of AVAX futures activity:

• Increased open interest indicates growing market confidence and institutional participation.
• Derivative trading awareness rises as traders take positions on future price movements.
• December’s sharp increase in open interest suggests heightened volatility expectations for the asset.

The consistent growth in open interest reflects optimism about AVAX’s potential as a leading asset in the cryptocurrency market.