Avalanche Price News: AVAX Stops at $35 But TVL Hits Records – Can It Keep Going?

Avalanche (AVAX) has booked a 14.5% gain in the past 7 days despite yesterday’s strong market-wide downturn.

The token has once again climbed to the $35 threshold – a key supply area from a historical standpoint – and trading volumes have surged by 70% in the past 24 hours as the token tries to break this threshold again.

Several catalysts have ignited the latest rally for AVAX. From a macroeconomic standpoint, the Federal Reserve’s interest rate cut last week is setting the stage for the continuation of the rally that started in May this year.

Meanwhile, the prominent investor Anthony Scaramucci announced this week that he is backing a publicly traded company called AgriFORCE Growing Systems to raise $550 million to launch a crypto treasury focused on AVAX.

Earlier this month, the Avalanche Foundation disclosed that it has been negotiating with multiple parties, including Scaramucci’s Hivemind Capital, to launch two treasuries holding up to $1 billion worth of this token.

The second treasury could be launched soon as well, and these negotiations appear to be the primary reason why AVAX is defying the market’s gravity.

Avalanche’s On-Chain Metrics Are Booming

In addition, on-chain data shows that weekly transaction volumes within the Avalanche network have been rising since July this year. Data from Artemis shows how this metric spiked since July 28, moving from 3.3 million back then to a peak of 13.5 million at the end of August. This represents a 4X increase in just a month.

Weekly Transactions, Avalanche Blockchain – Source: Artemis

Stablecoin reserves have doubled since mid-July as well, meaning that ecosystem growth is accelerating. Looking at Avalanche’s DEX and dApp data, the network’s total value locked (TVL) currently sits at $2.2 billion.

Aave is the largest protocol by TVL in this blockchain, accounting for half of the network’s total, followed by the top Avalanche-native dApp, Benqi, which is a liquidity protocol that allows users to seamlessly lend and borrow assets.

Weekly trading volumes across decentralized exchanges on this blockchain have also tripled since the year started, moving from $1.2 billion to $4.2 billion as of last week. Everything points to growing adoption of Avalanche by users, possibly as the network is taking some important steps to attract institutional investors.

AVAX Keeps Eyeing $50 Even if The Price Pulls Back

In our latest Avalanche price prediction, we emphasized that the launch of the first stablecoin pegged to the South Korean won, KRW1, on Avalanche was a key milestone for the network as it indicated growing adoption by top players in the crypto industry.

AVAX/USD Daily Chart (Coinbase) – Source: TradingView

This resulted in a bullish breakout above the $26 resistance that should have set off a move toward the $50 level. Since that article came out, the token has been consolidating as the selling pressure at this supply area has increased.

The odds favor a bullish breakout in the long-term, but we could still get a pullback to the trend line support shown in the chart. If that happens, late buyers could get the chance to scoop up AVAX at a much lower price of around $29 per token.

The Relative Strength Index (RSI) has already climbed to overbought territory, which also increases the odds of a retrace at this point. Nonetheless, both the macroeconomic landscape and project-specific developments favor a positive outlook for AVAX. Hence, any dip could be considered a buying opportunity.