Avalanche (AVAX) has broken above a key descending trendline that had acted as resistance throughout December 2025, signaling a potential shift in short-term momentum. The breakout occurred near the $13.50–$13.70 region, following a strong defense of the $12.00–$12.50 support zone. This technical move is supported by AVAX reclaiming its 50-day simple moving average for the first time since early October, a level that often acts as a momentum filter.
Key technical levels now in focus include resistance at $14.50–$15.00, with upside targets at $16.20 and then $18.00. Immediate support is seen at $13.40–$13.00. Analysts note that sustained follow-through with expanding volume is critical to validate the breakout, while a failure to hold above the broken trendline could shift focus back to range-bound behavior.
Fundamentally, Avalanche marked 2025 as a record-breaking year for on-chain growth. The network's C-Chain processed over 400 million transactions, the highest annual figure to date. Developers deployed more than 32 million smart contracts, with over 113,000 unique contract deployers participating in the ecosystem. Daily active users averaged 810,000, and the ecosystem has surpassed 10 billion total transactions across all its Layer-1 chains since inception.
From an economic perspective, nearly 5 million AVAX have been burned over the network's lifetime. Trading volume on the blockchain approached $1 trillion, and the value of real-world assets (RWAs) on Avalanche, including stablecoins, peaked at over $2.9 billion. Excluding stablecoins, RWA value exceeded $950 million. The network emphasizes that its maximum supply remains fixed at 720 million AVAX.
Adding to the medium-term narrative, Grayscale amended its AVAX ETF S-1 filing to include staking rewards, positioning AVAX among a select group of assets being structured for yield-inclusive investment products. While ETF approval timelines remain uncertain, this development highlights growing institutional consideration of Avalanche's network economics.
Market observers also point to AVAX showing relative strength against the broader market, suggesting potential capital rotation into the asset. However, the price now approaches a known supply zone between $14.50 and $15.00, where sellers have historically emerged.
