Avalanche (AVAX) has recently shown signs of bullish movement, and the possibility of a breakout that could push the price to $65 is becoming more likely. With recent developments on both the price chart and on-chain activity, traders are closely monitoring key levels that could indicate further upward momentum. Here’s why this breakout could happen and what to watch for in the coming days.

Key Price Levels to Watch

AVAX recently broke free from a long-term descending channel, marking a potential shift from the previous bearish trend that had persisted throughout 2022 and early 2023. This breakout, which occurred in mid-2023, hinted at a reversal, positioning AVAX for a possible uptrend.

Currently, AVAX is testing the critical $38.57 support level, which had previously acted as significant resistance. The fact that this level is now being retested as support is an encouraging sign, as holding this level could confirm a bullish continuation. If successful, this could pave the way for a third attempt at breaking through the $45.42–$47.81 resistance zone, which has previously rejected price rallies in July 2023 and February 2024. A breakout above this range would open the door for AVAX to target $65.00, a major resistance point that could bring in considerable buying pressure.

However, if AVAX fails to maintain support at $38.57, the altcoin could see a drop to the secondary support level at $32.66, potentially delaying the bullish momentum.

On-Chain Activity Shows Growing Adoption

On-chain metrics provide a strong backing for AVAX’s potential upside. Recent data from IntoTheBlock shows a significant 28.56% increase in active addresses, which surged to 60.46k over the past week. Additionally, 11.98k new addresses were created during the same period, indicating expanding participation within the Avalanche ecosystem. This growing user base is a positive signal of network adoption, which could translate into sustained demand for AVAX.

The rise in active addresses suggests healthy network engagement, reinforcing the bullish outlook for AVAX. If this trend continues, it could contribute to the momentum needed for a successful breakout to higher price levels.

Avalanche Ecosystem Shows Resilience

Beyond on-chain activity, Avalanche’s decentralized finance (DeFi) ecosystem is also displaying signs of sustained strength. Despite a slight 8.22% decline in the past 24 hours, the network’s total value locked (TVL) stands at $1.362 billion, demonstrating consistent usage of Avalanche’s DeFi platforms. Additionally, the stablecoin market capitalization on the network is currently $1.961 billion, further reflecting the growing role Avalanche plays in the broader crypto ecosystem.

Avalanche’s steady trading volume, which reached $499.98 million in the last 24 hours, indicates robust on-chain activity. These factors suggest that despite short-term price fluctuations, Avalanche’s ecosystem is maturing and continuing to attract users and capital.

Conclusion: Potential for a Bullish Run

With AVAX holding key support levels, growing on-chain activity, and a strong ecosystem backing, the altcoin appears well-positioned for a breakout. A successful rally above the $45.42–$47.81 resistance zone could pave the way for a move toward $65, a critical level that could trigger significant buying pressure. Traders will continue to monitor these key levels closely, and with the current bullish indicators in play, AVAX could be on the verge of a significant price breakout in the coming weeks.