Avalanche Price at Critical Juncture: Breakout or Breakdown Ahead?

Avalanche (AVAX) is at a pivotal point in its price action, with both bullish and bearish scenarios emerging. The cryptocurrency has been trading near the $9.20-$9.50 resistance zone for several days, which could be a crucial breakout or breakdown point.

The current price of AVAX is around $9.35, up 3.88% over the last 24 hours, but still below its previous cycle highs. On-chain data suggests that network usage is increasing, with a record-high weekly transaction count of over 20.5 million transactions in the past two and a half years.

This surge in activity could indicate strong ecosystem growth and user demand, which often precedes sustained price appreciation. However, weak institutional flows may limit upside momentum, as AVAX ETFs have not recorded net inflows since March 17.