Avalanche Maintains Critical Support: Why AVAX Traders Are Focusing on $18

Avalanche ($AVAX) Surges with Record 1.7M Active Addresses

Summary:
Avalanche's [AVAX] ecosystem is witnessing significant growth, as reflected in the record 1.7 million Daily Active Addresses. This growth is underpinned by real adoption in decentralized finance (DeFi), tokenization, and real-world assets (RWAs). With rising institutional confidence, traders are now keenly observing the $18 price level as the market prepares for potential bullish movements.

Key Takeaways:

Daily Active Addresses Surge: AVAX reached a milestone of 1.7 million active addresses, indicating substantial project growth.
Strong Taker Buy Activity: The dominance of Taker Buy trades signals bullish sentiment, supporting price resilience despite dips.
Whale Accumulation at $12: Whales are accumulating AVAX around the $12 mark, indicating strong long-term belief in the asset.
Resistance Ahead: The price is anticipated to face significant resistance at $18.52, with a potential rally towards $24.18 if momentum is sustained.
Market Caution: Early signals from indicators like RSI and MACD suggest caution, particularly if prices drop below $11.

Avalanche's Rise in Daily Active Addresses

Investors are paying close attention to the growth of Avalanche's ecosystem. The AVAX token recently achieved a notable milestone, recording a staggering 1.7 million Daily Active Addresses. This increase is driven by real-world application in areas like decentralized finance (DeFi), tokenization, and the incorporation of real-world assets (RWAs). As a result, the price of AVAX has seen upward movement, reflecting increased confidence from institutional investors.

Bullish Sentiment from Taker Buy Activity

Throughout January 2026, Taker Buy dominance in the AVAX market remained prominent, strengthening bullish sentiment among traders. As there was an increase in Taker Buy volumes, AVAX's price demonstrated resilience, especially when it dipped below $12.

The strong presence of Taker Buy activity during price surges indicated that investors were favoring long positions, contributing to sustained upward pressure on the price. Despite experiencing some short-term price fluctuations, this trend signals ongoing market strength.

Taker Buy Volume

Whale Interest in the $12 Range

Whales have been actively accumulating AVAX around the $12 mark, according to data from CryptoQuant, which highlighted heightened activity when the price dipped to $11.32. This sustained buying pressure has helped keep the price above $12, indicating that large investors maintain strong confidence in AVAX's long-term potential, despite market volatility.

Whale Activity

Forecast for AVAX’s Momentum

AVAX has shown impressive resilience, remaining above the $12 threshold amidst rising market activity. A review of the daily chart reveals an ascending triangle pattern, which often indicates bullish continuation. Should the price surpass the resistance level at $15.36, further upward movement could be expected.

AVAX Daily Chart

However, resistance at $18.52 looms, with the possibility of a rally towards $24.18 if the upward momentum continues. On the flip side, caution is warranted as indicators such as RSI and MACD suggest potential weakness. A decline below $11 could lead to a drop in price to the $8.60 range. Therefore, traders are encouraged to keep an eye on crucial support and resistance levels in the coming weeks.

Final Thoughts

As AVAX continues to build momentum, understanding market dynamics and investor behavior becomes essential. Close monitoring of support levels and market indicators will be crucial for traders looking to navigate the exciting but volatile world of cryptocurrency.