Avalanche (AVAX) Price Prediction: AVAX Clears Multi-Month Downtrend, Targets $30–$40 Recovery Zone

Avalanche is gaining fresh momentum after a key breakout and major institutional push in Europe, setting the stage for a potential trend reversal.

Avalanche AVAX price is starting to flip the script, both on the charts and on the on-chains. After months of sluggish action, the token is finally showing signs of a real turnaround, boosted by fresh momentum from Europe’s institutional scene.

Avalanche Gains Institutional Access For Europe

In a major positive development, AVAX has officially entered the institutional arena inside of Europe. Crypto Finance, part of the Deutsche Börse Group, now offers fully regulated custody and execution services for Avalanche under Swiss financial clarity. This means banks, asset managers, and financial institutions across Europe can now access AVAX through compliant and secure infrastructure, marking a key step forward in Avalanche’s mainstream adoption.

Avalanche secures regulated European access through Deutsche Börse-backed Crypto Finance, opening doors to institutional capital. Source: Ahnor_Block via X

This news is likely to have a positive long-term impact on the AVAX price as compared to any short-term bounces. With one of Europe’s most reputable financial structures behind it, Avalanche is better positioned than ever to attract capital from the European regions.

AVAX Price Breaks Out of the Downtrend

Following the recent regulatory breakthrough in Europe, Avalanche is now starting to show signs of life on the technical side, too. As highlighted by CryptoDoc, AVAX has cleanly broken out of its multi-month descending trendline that’s capped price action since early 2025. This breakout, coupled with a solid base of higher lows, marks a potential trend reversal.

AVAX breaks out of its multi-month downtrend, reclaiming key levels near $22 to $24 as bullish momentum builds. Source: CryptoDoc via X

The current price action around the $22 to $24 zone is notable. It coincides with the prior support-turned-resistance region and now sits right above the breakout point. If AVAX can consolidate above this zone with some follow-through volume, the setup opens room for a push back towards the $30 to $32 level.

AVAX Clears Cloud Resistance, Opens Path to Higher Targets

Building on recent momentum, AVAX just notched another technical win, this time breaking through both the descending trendline and the daily Ichimoku cloud resistance. Analyst Chris points out that this dual breakout strengthens the bullish case, as it clears two significant zones that have suppressed price action for months.

AVAX breaks above Ichimoku cloud and trendline resistance, with bulls now eyeing the $30–$40 range. Source: Chris via X

If this structure holds, Chris projects a move towards the $30 to $40 range over the next 1–2 months, a level that aligns well with the previous local highs before the major breakdown earlier this year. With confluence from other chart signals and a broader tailwind from institutional and regulatory developments in Europe, AVAX is starting to look more convincing as a recovery candidate.

Avalanche Leads Capital Rotation as On-Chain Metrics Heat Up

Avalanche is quietly climbing the leaderboard, and not just in price. Over the past month, AVAX has topped the charts for net bridge inflows, raking in over $104 million, well ahead of names like Sei, Aptos, and Polygon. Meanwhile, at the same time, DeFiLlama data shared by Seb_1716 shows AVAX’s TVL jumping by $100 million in just one week, now sitting near $1.6 billion. The trend has been building since March, but this latest spike confirms serious momentum.

AVAX adds $100M in TVL in a week, signaling strong capital rotation into the ecosystem. Source: Seb via X

The combination of high inflows and growing TVL is more than just optics and is putting AVAX price prediction in a positive momentum.

AVAX Fundamental Triggers

The growth in inflows and TVL is likely to have a serious positive impact on the price of AVAX. This surge in on-chain liquidity reinforces the recent technical breakout, adding real weight to what might otherwise be just another relief rally. With price now sitting above the descending trendline and pushing through resistance levels, these fundamentals help validate the momentum and increase the probability of a sustained move toward higher targets like the $30 to $32 zone.