Key Insights:
- AVAX tests $28 support, crucial for potential recovery or further decline.
- DeFi TVL exceeds $2B, reflecting Avalanche’s growing ecosystem and user engagement.
- RWA volume rises 130.5%, boosting Avalanche’s market share to 2.69%.
Avalanche ($AVAX) is facing a crucial moment as its price shows signs of potential decline, testing the $28 support level. The platform’s decentralized finance (DeFi) ecosystem continues to grow, with total value locked (TVL) surpassing $2 billion.
AVAX Testing Key Support Zones
AVAX is trading below key resistance levels, and its price is testing two crucial support zones. According to CryptoPulse, the first zone is between $29.8 and $30.5, while the second zone lies between $28.0 and $28.8.
Traders are observing these areas closely, expecting a potential bounce that could lead to a price increase. Any close below $28 would invalidate this bullish outlook.
As $AVAX approaches these demand zones, there is an increasing focus on whether the cryptocurrency can hold these levels. If the price fails to hold, further declines could follow. On the other hand, if it bounces at these key support zones, the price could recover.
Avalanche DeFi TVL Reaches New Heights
However, Avalanche’s decentralized finance (DeFi) ecosystem has seen substantial growth, with TVL now exceeding $2 billion. Pukerainbow, a crypto analyst, pointed out that the last time the DeFi TVL reached such levels was two years ago.
Pukerainbow noted that it’s crazy how fast money rotates back when the vibes shift, noting how quickly interest has returned to the platform. The growth in TVL signifies an increasing engagement in Avalanche’s DeFi sector, supporting the network’s overall development.
As of press time, the Avalanche is trading $31.92 with a 24-hour trading volume of $1.60. Avalanche is down 2.88% in the last 24 hours.
Strong Momentum for AVAX with RWA Volume Growth
Meanwhile, Analysts are projecting a strong upward trend for Avalanche as it sees significant growth in both trading volume and market share. AVAX’s RWA volume has soared to $453.4 million over the past 30 days, marking an increase of 130.5%.
This surge has pushed AVAX’s market share to 2.69%. The growth in volume and market participation suggests a growing interest in Avalanche’s ecosystem, signaling a potential bullish outlook for the cryptocurrency in the near future. With this momentum, analysts are watching for further price movements, primarily as AVAX tests key support levels.
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Source: https://coincu.com/analysis/avax-eyes-28-support-level/