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Avalanche (AVAX) is showing a potentially bullish setup, with buyers defending key levels. A confirmed breakout could strengthen momentum and improve the AVAX price’s outlook as traders watch for further upside. Meanwhile, Avalanche’s DeFi ecosystem is gaining traction as rising liquidity signals stronger network participation.
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At the time of writing, AVAX is trading at $7.40 with a 24-hour trading volume of $170.36 million and a market capitalization of $3.2 billion. Following the 1.75% gain over the last 24 hours, the AVAX price structure and TVL growth point to a bullish reversal ahead.
AVAX Price Eyes $8.41 as Bullish Setup Emerges
According to the crypto analyst CryptoJack, the AVAX price is showing a potentially bullish setup on the four-hour chart, attracting attention from traders watching for signs of a larger price move.
The current structure suggests momentum could strengthen if buyers continue defending key levels and resistance begins to weaken. This setup has raised expectations for increased volatility across the next several trading sessions.
In the event that bullish sentiment gains further pace, the AVAX price may have an upside target of the $8.41 zone.
However, the cryptocurrency will need to break out past the immediate resistance level in order for it to achieve that feat. If the breakout fails, the AVAX price may retreat lower in anticipation of a fresh breakout attempt.
Avalanche DeFi Growth Pushes TVL to $488.5 Million
The data from MSB Intel further highlighted that the DeFi ecosystem of Avalanche is gaining momentum after witnessing $488.5 million in total value locked on the platform.
It is basically the amount of money invested by users in their DeFi protocols that include decentralized exchanges, lending protocols, and liquidity pools, among others. An increase in TVL could be an indicator of increased confidence in Avalanche’s DeFi platform.
Additionally, this expansion will bolster Avalanche’s overall ecosystem view since liquidity will help drive transaction volume, loans, and dApps.
The sustained increase in TVL may boost sentiment for AVAX as long as usage increases on the network. But note that TVL can be affected by many factors, including price, which makes the monitoring of adoption and liquidity worthwhile.
What Happens Next?
The AVAX holders should be wary of any breakout above the resistance levels as the next indication of the bullish progression of the coin towards $8.41.
The growth of the DeFi Total Value Locked (TVL) and activity on the network will boost the bulls’ mood. However, the failure to break above the resistance or weakening of the support could hinder the comeback.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Source: www.tronweekly.com