Avalanche's native token AVAX has broken above a critical $27 resistance level, reaching nearly $29 amid strong institutional interest and a planned $1 billion treasury initiative by the Avalanche Foundation. The cryptocurrency gained 8% in 24 hours and 16% over seven days, with daily trading volume hitting $1.79 billion.
What to Know:
- AVAX broke above the $25-$27 resistance zone that had rejected price advances multiple times this year, with analysts forecasting potential 70-75% gains toward $40-$42
- The Avalanche Foundation is in advanced talks to establish two cryptocurrency treasury companies in the United States, targeting $1 billion in funding
- Major investment firms including BlackRock, Apollo, and Wellington Asset Management are testing fund tokenization on Avalanche's network
Technical Breakout Signals Bullish Continuation
The resistance zone between $25 and $27 had repeatedly rejected AVAX advances throughout 2025. Technical analysts now expect this former resistance to function as support, with near-term price targets extending beyond $30.
Alpha Crypto Signal noted on social media platform X that "AVAX has successfully broken above its major resistance area with strong volume." The analysis firm indicated it would wait for a pullback to retest the zone before considering long positions. A confirmed four-hour green close above the breakout level would strengthen the technical setup, according to their assessment.
AVAX has been forming higher lows since June, creating upward pressure against the resistance band.
The breakout occurred with significant volume participation, indicating active buyer interest at current levels.
Analyst World Of Charts projected AVAX is "building up for a massive breakout, expecting 70–75% move after breakout." Their technical analysis points to a potential rally toward the $40-$42 range, levels not seen since early 2025. The price pattern resembles an ascending triangle formation, a structure that typically precedes bullish continuation moves.
Extended consolidation above the $27 level would further strengthen the technical foundation for additional gains. Traders are monitoring whether momentum can sustain above the breakout point to confirm the next upward leg.
Foundation Treasury Plans Drive Institutional Interest
The Avalanche Foundation is pursuing advanced discussions to establish two cryptocurrency treasury companies in the United States, according to Financial Times reporting. One entity would be newly created, while the other involves converting an existing company into a treasury vehicle.
Foundation officials are targeting the $1 billion mark for funding generated through these treasury ventures.
Deal closures are expected within weeks, according to sources familiar with the negotiations.
Institutional adoption continues expanding across Avalanche's infrastructure. Investment management firms BlackRock, Apollo, and Wellington Asset Management are actively testing fund tokenization capabilities on the network. This institutional experimentation reflects growing confidence in Avalanche's blockchain technology for traditional finance applications.
On-chain activity data supports the increased institutional interest. Avalanche's C-Chain processed 35.8 million transactions in August, marking the second-highest monthly count in network history. One week during August recorded 10.9 million transactions, the busiest seven-day period since December 2023.
The sustained transaction volume demonstrates continued adoption of Avalanche's decentralized applications ecosystem. This underlying network usage provides fundamental support for the technical breakout patterns traders are monitoring.
Understanding Key Terms
AVAX serves as the native cryptocurrency for the Avalanche blockchain network, which focuses on smart contracts and decentralized applications. The C-Chain represents Avalanche's main contract chain where most decentralized finance activity occurs.
Fund tokenization involves converting traditional investment fund shares into digital tokens on blockchain networks. This process allows for more efficient settlement and potentially broader investor access to institutional investment products.
An ascending triangle is a technical analysis pattern where price forms higher lows while encountering resistance at a horizontal level. Breakouts above the resistance typically signal continued upward movement.
Closing Thoughts
The combination of technical breakout confirmation and institutional treasury developments positions Avalanche for potential continued gains. Analysts are monitoring whether price action can sustain above the $27 support level while institutional adoption accelerates through the Foundation's treasury initiatives.