AVAX crypto is holding firm at the $16 support level, with participants watching closely as strong on-chain growth contrasts the ongoing bearish trend and hints at a possible recovery ahead.
AVAX crypto has quietly become one of the most talked-about tokens this week as it continues to defend the $16 mark. Despite the broader downtrend, on-chain data and fundamentals remain firm. Participants believe this resilience could set the stage for a potential rebound if momentum starts shifting back above key resistance levels.
Downtrend Persists With Lower Lows Still Dominant
AVAX crypto continues to display a clear lower-low structure, suggesting that the prevailing downtrend remains unbroken. The chart shared by Jesse Peralta highlights sequential breakdowns, with each rally failing to surpass prior highs. Currently, the asset is hovering above the $15 support zone, which stands as the final structural defense before the next projected drop towards $13.80.
AVAX struggles to hold key support as persistent lower lows signal sustained bearish pressure. Source: Jesse Peralta via X
Price action has also remained below key short-term EMAs, reinforcing bearish market control. Unless AVAX price reclaims levels above $17.20 to $17.50, momentum will likely favor further downside continuation. Participants are closely watching whether this $15 floor holds, as its loss could confirm a new leg lower in the ongoing corrective cycle.
Can AVAX Short-Term Trend Flip Bullish?
Avalanche currently trades near $16.68, showing a modest 1.28% intraday recovery, but the broader market structure still leans cautious. The asset has been oscillating between $16 and $17, where buyers appear to be absorbing dips while sellers maintain pressure on intraday rallies.
Avalanche’s current price is $16.68, up 1.28% in the last 24 hours. Source: Brave New Coin
Technically, a move above $17.80 would mark a higher-high formation, the first signal of potential short-term reversal. Until that happens, this remains a neutral-to-bearish accumulation phase around a crucial pivot level.
On-Chain Fundamentals Stay Strong Despite Weak Price Action
Despite the corrective market tone, Avalanche’s on-chain strength remains exceptional. Data shared by Patrick highlights Avalanche’s growing dominance in the real-world asset (RWA) sector, with total RWA value now exceeding $1.24 billion, up 66% over the last 30 days.
Avalanche’s on-chain data reveals explosive RWA growth, with total value surging 66% in 30 days to surpass $1.24 billion. Source: Patrick via X
In the same period, stablecoin transfers reached $113 billion, and 30-day RWA transfer volume stood at $18.32 billion, representing nearly 10% of all RWA movement across chains. Such metrics emphasize that even as price consolidates, network activity and ecosystem expansion are accelerating, reinforcing Avalanche’s reputation as the “everything-tokenized” chain.
$16 Key Level Holds as Historical Support
Ali Martinez underscores that $16 has been a crucial support level for AVAX price since March, marking multiple successful defenses over the past several months. This region now acts as both a psychological and technical anchor for the market.
$16 support continues to act as a critical defense zone, repeatedly holding firm since March. Source: Ali Martinez via X
Repeated rebounds from this level have formed a well-defined horizontal base, suggesting that the majority of long-term participants continue to see value around this price. If $16 remains protected, AVAX crypto could build a foundation for a gradual mid-term reversal, especially if the broader market sentiment stabilizes.
Community Confidence Remains Unshaken
Even as prices consolidate near multi-month lows, the Avalanche community remains firmly optimistic. ExcelBaller captured this sentiment perfectly, emphasizing that Avalanche’s long-term potential lies in its strong user and developer base.
AVAX crypto community remains steadfast, with builders and holders viewing current lows as a quiet accumulation phase before the next breakout. Source: ExcelBaller via X
Many within the AVAX ecosystem continue to echo this belief, viewing current conditions as a phase of quiet accumulation before a broader breakout cycle. The recurring message from top builders and supporters is clear: the community is the catalyst, and sustained conviction through market turbulence often precedes major upside moves.
Final Thoughts: Outlook for Q4 2025
AVAX crypto continues to navigate a challenging short-term structure, but the broader outlook remains balanced between technical caution and fundamental strength. The lower-low sequence keeps short-term traders defensive, yet the $15 to $16 region has repeatedly shown resilience, a critical level where both technical and on-chain signals converge.
With RWA growth surging and stablecoin activity maintaining strong on-chain velocity, Avalanche’s ecosystem fundamentals appear far stronger than its price currently suggests. This divergence often signals early accumulation phases, especially when long-term support holds and community conviction stays firm.
If the price successfully stabilizes above $16 and begins reclaiming $17.5 to $18 resistance, it could mark the start of a structural reversal heading into late Q4