AVAX Soars 40%: Will Traders Save the Day? 💸

Key Takeaways

DeFi TVL and Open Interest are having a party, but social and network metrics are just standing there, confused. 🤷‍♂️

Avalanche’s [AVAX] DeFi ecosystem has seen a significant boost following its recent Octane upgrade, with total value locked (TVL) soaring nearly 40% quarter-over-quarter to $1.5 billion. It’s like the blockchain version of a caffeine shot. ☕

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Will AVAX break past resistance?

AVAX recently completed a textbook double bottom pattern and broke out of its descending trendline. The price now hovers around the $26–$28 resistance zone, historically acting as a strong barrier. It’s like the blockchain version of a stubborn wall. 🧱

This technical setup typically signals a trend reversal, but confirmation requires a decisive close above resistance. Let’s hope they don’t get stuck in the “almost there” zone. 🚧

A rejection from this level could trigger a pullback to retest lower supports. However, sustained buying pressure—particularly from DeFi inflows and traders—could pave the way for a clean breakout in the coming sessions. 🌅

Why is sentiment improving while social attention weakens?

Despite the price rally, AVAX’s social dominance has dropped to 0.419%, reflecting fading discussions and hype around the asset. It’s like the blockchain version of a quiet party. 🎉

In contrast, Weighted Sentiment improved slightly to +0.115, signaling a modest shift toward optimism. Modest? More like “I’m cautiously optimistic, but not really.” 🤔

The muted social presence may limit the reach of this rally, especially if media traction doesn’t follow price performance. Therefore, a surge in social buzz could be key to fueling further upside. 🚀

Can AVAX maintain momentum despite falling network activity?

Network data paints a less optimistic picture, with new addresses dropping by 33.93% and active addresses falling over 10% in the last seven days. These figures contrast sharply with the rise in price and TVL, implying that the rally may be driven more by capital rotation than organic user growth. Capital rotation? More like “I’m moving money around to see what sticks.” 💸

For long-term sustainability, Avalanche needs renewed user onboarding and interaction. Otherwise, the current momentum may lose strength once the initial upgrade-driven excitement fades from the ecosystem. It’s like a house of cards, and the wind is coming. 🧊

Conclusively, AVAX is showing technical and fundamental strength, with rising TVL, bullish price patterns, and growing trader confidence. However, weak network activity and flat social traction could limit its upside. A successful resistance breakout, paired with renewed user growth, may validate the rally and open doors to higher targets. 🧱

2025-07-29 09:15

Key Takeaways

Will AVAX break past resistance?

Why is sentiment improving while social attention weakens?

Can AVAX maintain momentum despite falling network activity?

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