**AVAX Crypto at a Pivotal Moment: On-Chain Activity Defies Price Lows**
Avalanche (AVAX) finds itself at a crucial juncture as price action compresses near multi-year lows. However, on-chain data presents a contrasting narrative. Despite months of sideways trading, network activity continues to climb, signaling a positive long-term outlook for the project.
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### Smart Money Zones Coming into Play
Crypto analyst Carl Moon highlights that AVAX is approaching what he terms the “deep discount zone,” an area historically associated with bear market lows. Currently, the price is nearing the $14 to $16 region—a level that has previously served as a long-term accumulation zone.
Below this range lies a final liquidity pocket near $10, forming the complete smart money buy zone. AVAX approaching this historical accumulation zone suggests a potential bottom formation. Notably, volume spikes within this region often precede recoveries, indicating capital rotation back into undervalued layer-one projects like Avalanche.
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### Weekly Support Holds as AVAX Price Structure Stabilizes
The AVAX chart shows price hovering around $16, which has acted as a multi-year horizontal support. Every test of this base since 2023 has resulted in strong rebounds, indicating that this is a key area of long-term accumulation.
AVAX remains firm above this critical $16 support zone, with higher-timeframe compression suggesting an upcoming breakout. A move beyond this range could initially target $35, while a confirmed weekly close above $40 would signal a structural shift toward bullish continuation.
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### On-Chain Volume Reaches Record Milestone
Avalanche’s cumulative trading volume has now surpassed $973 million, reflecting sustained ecosystem activity despite recent softness in price. According to blockchain analyst Marc Shawn Brown, this increase in transaction throughput correlates with growing participation across Avalanche’s subnets and DeFi protocols.
Such steady on-chain strength reinforces the narrative that AVAX remains fundamentally active and engaged, even while the market trades sideways.
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### Technical Signals Hint at Early Reversal
Recent price action shows Avalanche forming a bullish engulfing candle near $15.90, a level coinciding with both the value area low (VAL) and the point of control (POC) on the volume profile. This alignment suggests demand absorption may be underway, potentially marking a short-term bottom.
Additionally, rising buy volumes and tightening Bollinger Bands hint at an early reversal. If the current AVAX candle closes strongly and is followed by a continuation bar above $17, it could confirm the start of a relief rally.
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### Final Thoughts: Can AVAX Bounce from Bear Market Lows?
AVAX is now trading near historical demand zones, with on-chain metrics painting a healthier picture than price alone indicates. The convergence of technical support around $14 to $16 and strengthening ecosystem participation underscores a potential inflection point for the asset.
Currently priced at $16.91, down 7.09% in the last 24 hours, AVAX appears to be transitioning from capitulation toward quiet accumulation—a pattern often seen before broader market reversals. Smart money seems to be positioning early, suggesting potential upside ahead.
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*Stay tuned for further updates on AVAX as it navigates this critical phase in its price and network development.*
https://bitcoinethereumnews.com/tech/avalanche-avax-price-prediction-avax-consolidation-near-key-supports-could-set-the-stage-for-recovery/