Avalanche Price Prediction: AVAX Breaks Two-Month High! Double Bottom Pattern Brewing for 82% big pump, DeFi TVL Surges 37% in a Single Month

Avalanche (AVAX) rose strongly by 4.21% on July 21, currently trading at $25, reaching a two-month high. The price is approaching the key double bottom neckline resistance level of $26.88. If it can effectively break through, the technical outlook suggests a potential 82% rise, targeting $48 (the high level for Q4 2024). The strong on-chain fundamentals provide solid support: the total locked value (TVL) of Avalanche's on-chain DeFi has soared by 37% in a month, reaching $1.89 billion, and the surge in network activity provides a solid buying foundation for AVAX. Against the backdrop of the Layer 1 sector's recovery, AVAX, ranked 16 by market capitalization, shows strong rebound potential.

AVAX strongly breaks through a two-month high, double bottom pattern suggests 82% pump potential

Avalanche (AVAX) has become the leading target for the recent recovery in the Layer 1 sector. Driven by Ethereum's rebound, the previously underperforming L1 tokens are collectively warming up, and the weekly chart for AVAX shows that bulls are gradually regaining control.

The price of AVAX tested 14.75 USD twice in April and June 2025, receiving strong support and rebounding, forming a classic "double bottom" structure. The current price has broken through the 25 USD level, reaching a two-month high, and is approaching the key neckline resistance level of the double bottom pattern at 26.88 USD.

Technical analysis shows that if AVAX can strongly break through the neckline of $26.88 with strong volume (the confirmation point of the double bottom structure), it may initiate a new round of significant rise. The theoretical target can be seen at $48, representing a potential increase of up to 82% compared to the current price. This price level is also the previous high reached by AVAX in December 2024.

RSI Indicator Reappears Bull Market Crossover Resonating with Q4 2024 Rise

Further strengthening the bullish signal is the positive change in the Relative Strength Index (RSI). The RSI for AVAX has broken above the 50 midline for the first time since January 2025, forming the same "bullish crossover" pattern seen before the explosive market surge from October to December 2024. This indicator clearly shows a significant increase in buying power, providing technical support for AVAX price predictions.

On-chain TVL surges 37% in a single month, DeFi ecosystem explosion provides fundamental support

The rise of AVAX's momentum comes not only from its technical formation but also receives strong support from robust on-chain fundamentals. As Ethereum's rise drives the prosperity of the Layer 1 ecosystem, DeFi activities on the Avalanche chain are experiencing explosive growth.

According to DeFiLlama data, the total Lock-up Position (TVL) of the Avalanche network has surged from $1.38 billion to $1.89 billion in the past month, an increase of 37%. The spike in TVL directly reflects the increase in network usage and user confidence.

How does the growth of TVL empower the value of AVAX?

1. Increased Demand: The rise in network activity directly boosts the demand for AVAX (as network gas fees and staking tokens).
2. Increased Confidence: The continuously growing TVL enhances investors' confidence in the long-term value of AVAX, helping to withstand short-term fluctuations.
3. Ecosystem Prosperity: The influx of funds indicates that the attractiveness of the Avalanche DeFi ecosystem is increasing, creating a positive cycle of value growth.

Layer 1 Sector Rotation: AVAX's Potential for Catching Up Becomes Apparent

The current cryptocurrency market shows a clear characteristic of sector rotation, with Layer 1 projects stepping in to become the new favorites of capital, replacing Ethereum. In this context, AVAX stands out with its strong technical breakout signals, rapidly expanding on-chain ecosystem (as evidenced by TVL data), and relatively reasonable market capitalization ranking (currently ranked 16th), making it significantly attractive to traders seeking high-potential L1 targets.

The market expects that if AVAX successfully breaks through the resistance level of $26.88, along with the continuously increasing on-chain activity, it will attract more funds to chase the theoretical rise target of the double bottom formation.

Gate.io market shows that AVAX is currently priced at 25.74 USD, with a 24-hour pump of 3.24%.

Conclusion: Avalanche (AVAX) is at a critical point driven by both technical and fundamental factors. The breakthrough of the double bottom pattern at the $26.88 neckline will confirm a rise potential of 82%, targeting a high of $48. The astonishing 37% month-on-month growth in on-chain TVL provides solid intrinsic support for the price, demonstrating ecological vitality and long-term value. Against the backdrop of an overall recovery in the Layer 1 sector, the mid-market capitalization AVAX shows strong momentum for rebound. Investors need to closely monitor the battle at the neckline and the accompanying volume situation; if the breakthrough is effective, AVAX may become the leading pioneer in this round of L1 rotation.