Avalanche (AVAX) is demonstrating fundamental strength despite facing significant technical headwinds in early 2026. The network achieved a milestone of 1.7 million Daily Active Addresses, driven by real adoption in DeFi, tokenization, and Real-World Assets (RWAs). This surge in activity has fueled institutional confidence, with filings and allocations supporting the growth, positioning Avalanche as institutional-grade infrastructure for scalable finance.
However, the AVAX price is caught in a challenging technical pattern. Trading around $12.30, the token remains approximately 90% below its all-time high and is trapped under long-term moving averages. A descending triangle pattern is applying pressure, with traders closely watching the $10 level as a key psychological support. While the network has burned nearly 5 million tokens, the daily release of about 1.6 million new AVAX continues to offset supply reductions, creating headwinds for price appreciation.
On-chain data paints a more optimistic picture. Avalanche processed over 65 million transactions in a single month, with stablecoin usage and active addresses on the rise. Whale accumulation has been aggressive around the $12 mark, with significant buying pressure observed when the price dipped to $11.32, indicating strong belief in AVAX's long-term potential. The dominance of Taker Buy activity throughout January 2026 has signaled sustained bullish sentiment, helping maintain upward price pressure.
Technically, analysts note an ascending triangle pattern on the daily chart, suggesting potential for further growth if the $15.36 resistance is broken. The next major resistance is seen at $18.52, with a breakout potentially paving the way for a rally toward $24.18. However, caution is advised due to RSI and MACD signals, and a drop below $11 could trigger a decline to $8.60.
In parallel, Zcash (ZEC) has received a significant regulatory boost. The Zcash Foundation confirmed that the U.S. Securities and Exchange Commission (SEC) has closed its investigation into the project without taking any legal action. This development, which removes a major regulatory overhang dating back to 2023, has provided market stability for the privacy-focused asset. ZEC was trading near $360 following the news, marking a shift from uncertainty to a more patient market outlook. While developer activity is lower than previous peaks, the core protocol is being steadily maintained.
The article also highlights the emergence of participation-based projects like "ZKP Crypto," which is conducting a $5,000,000 giveaway and promoting a model where value is earned through verifiable network contribution via hardware "Proof Pods." This is presented as part of a broader market trend where investors are shifting focus from hype to projects with tangible utility and resilient structures.
