Avalanche (AVAX) is drawing renewed attention in the crypto market as a combination of technical signals, robust capital inflows, and institutional recognition set the stage for a potential price rally. The recent addition of AVAX to Grayscale’s Top 20 crypto list for Q3 2025 has put the token back in the institutional spotlight, signaling growing confidence in Avalanche’s role within the DeFi and Layer 1 ecosystem.
Grayscale’s Endorsement: A Vote of Confidence
Grayscale, a leading digital asset manager, has included Avalanche in its Top 20 crypto assets for the third quarter of 2025. This move is significant, as it reflects a shift in institutional focus towards AVAX, especially as narratives around Layer 1 blockchains regain momentum. The inclusion is expected to attract further capital and attention from both retail and institutional investors, potentially influencing the broader capital rotation cycle in the crypto market.
Technical Analysis: Bullish Patterns Emerge
On the technical front, AVAX is showing promising signs. Analysts have identified a classic AB=CD bullish pattern on lower timeframes, with a short-term price target of $19.20. This pattern, supported by recent price action rebounding from the $16.80 area, suggests that if AVAX can break through the $18.30 resistance, a swift move towards $19.20 is likely. The $19.20 level also aligns with previous resistance observed in late June, reinforcing its significance as a near-term target.
Beyond the short-term, AVAX has formed a macro double bottom pattern around the $17–$18 support zone. This structure, respected multiple times over the past 18 months, is considered a strong historical demand area. A breakout above the $24–$25 neckline would confirm the double bottom and could open the door to a move towards $50, according to technical analysts.
On-Chain Activity and Capital Inflows
Avalanche’s fundamentals are also strengthening. The network recently recorded over 1,3 million daily transactions, marking a new all-time high and highlighting growing demand, particularly on the C-Chain. In parallel, AVAX has seen consistent capital inflows, with $3,84 million entering the ecosystem in the past 24 hours—second only to Ethereum. This sustained liquidity injection is a positive signal for price stability and potential upside.
What’s Next for AVAX?
With technical patterns aligning, institutional interest rising, and on-chain activity surging, Avalanche appears well-positioned for a short-term rally. The key level to watch is the $25 neckline; a decisive break above this resistance could accelerate momentum and set the stage for a move towards $50. While some analysts have even suggested higher targets in the coming months, the immediate focus remains on the $19.20 and $25 resistance zones.
For investors and market watchers, Avalanche’s current setup offers a compelling case for renewed upside, provided that market conditions remain favorable and volume continues to support the trend.