AVAX Price Analysis: Bearish Signals Despite On-Chain Activity Surge
As AVAX price approaches a critical technical juncture, the cryptocurrency market is facing a pivotal moment. Despite strong on-chain activity on the Avalanche network, price action is displaying bearish signals that could potentially lead to a further downturn.
Technical Analysis
After a period of consolidation within an ascending channel following a double bottom pattern reversal in mid-March, AVAX price has now formed a descending triangle pattern. The price is currently testing key horizontal support levels, signaling a potential shift in market structure from bullish to bearish.

The current make-or-break level for AVAX price is around $17.80 – $18.50, where key support levels intersect. A breakdown below this zone could lead to a further decline towards $15.00. With the RSI nearing oversold territory and price at multi-level support, the next few daily candles will be crucial in determining the future direction of AVAX.
On-Chain Activity
Despite the bearish price action, Avalanche has been experiencing a surge in on-chain activity. The recent increase in transactions, driven by arena.trade, has resulted in network metrics reaching new highs. The 7-day moving average of daily transactions has exceeded 1 million, the highest in over a year.
However, the spike in activity has not been accompanied by a significant rise in active addresses, indicating that a smaller group of users is driving the majority of the volume on the network.
