TLDR
- AVAX price reclaimed its 200-day EMA, currently trading at $24.54, showing renewed bullish momentum
- Avalanche led all chains with $111 million in weekly inflows, outpacing Ethereum and Solana
- Toyota partnership announced on September 4th to develop blockchain-based robotaxi network
- Whale activity surged with 8.66 million AVAX ($161.4 million) transacted within 24 hours
- C-Chain transactions increased 493% quarter-over-quarter during August 2025
Avalanche (AVAX) has stepped back into the spotlight after spending much of August moving sideways. With price reclaiming its 200-day EMA and buyers steadily defending key support zones, momentum is beginning to tilt in favor of the bulls.
AVAX is currently trading at $24.54, holding steady above its short-term support band that has been tested multiple times over the past month.
The higher-low formation visible on the chart reinforces the idea that buyers are stepping in on each dip, keeping the structure constructive.
Technically, the next challenge sits at the $27 resistance zone, where previous attempts have stalled.
A clean move through this level would clear the way towards the psychological $30 mark, aligning with the broader bullish narrative built in recent sessions.
AVAX is starting to look really good here!
After struggling to get above multiple EMA levels for months it took most of August to consolidate in a nice range and remain in a tight bullish structure.
Should also note that is crossed back up over the 200 day EMA as well.
Lots… pic.twitter.com/oi688d2NbQ
— Trading Aloha (@TradingAloha) September 5, 2025
What stands out is how this reclaim of the 200-day EMA aligns with the broader bullish shifts seen in recent weeks.
Momentum indicators are beginning to tilt upward, hinting at improving conditions if AVAX can maintain its footing above the reclaimed EMAs.
The current setup suggests a controlled build-up rather than an overextended move.
Capital Flows Support Bullish Case
Avalanche is showing dominance on the capital flows front as well, leading all chains in weekly net inflows with over $111 million entering the ecosystem.
This stands in sharp contrast to outflows seen on majors like Ethereum and Solana, signaling a rotation of liquidity toward Avalanche.
Sustained inflows of this scale often reflect growing confidence among participants, particularly when paired with a stable chart structure.
The convergence of strong technical recovery with fresh liquidity suggests that buyers are positioning with strength.
For aggressive traders, the current setup presents an attractive risk-reward opportunity.
With AVAX price trading just below the critical $25 resistance level and multiple bullish catalysts in play, a position with stops below $22.19 offers a favorable risk-reward ratio targeting $27.38 or higher.
Toyota Partnership Fuels Adoption Narrative
The AVAX price has gained momentum following several significant developments, with the most impactful being Avalanche’s partnership with Toyota announced on September 4th.
This collaboration positions Avalanche as the infrastructure backbone for a blockchain-based robotaxi network, handling autonomous vehicle operations and data management.
Adding fuel to the bullish sentiment, whale activity has surged dramatically.
On September 2nd, large holders transacted 8.66 million AVAX worth $161.4 million within 24 hours, indicating renewed institutional confidence in the project.
The technical infrastructure improvements are equally compelling.
Avalanche’s C-Chain experienced a remarkable 493% quarter-over-quarter increase in transactions during August 2025, driven by the Octane and Etna upgrades that slashed fees by up to 90%.
Daily transactions have now reached 2.26 million, demonstrating the network’s growing utility and user adoption.
Current market analysis suggests that increased activity stems from decentralized exchanges, trading bots, and whale speculation in memecoins.
Based on technical analysis, Avalanche shows a predominantly bullish setup with several key indicators supporting continued upward momentum.
The AVAX price currently sits above all major moving averages, with the SMA 7 at $24.34, SMA 20 at $24.20, and SMA 50 at $23.96, creating a classic bullish alignment.
AVAX is approaching the key $25 resistance level. A break above this price point could trigger significant buying interest, potentially propelling AVAX toward higher targets.
The Avalanche price currently holds above critical support levels at $22.19 and $20.57, which represent key areas where buyers have historically stepped in.
With price holding firm above short-term supports around $24 and eyeing the $27 to $30 resistance band, the broader story of ecosystem adoption could act as the catalyst to carry AVAX into its next phase.
The next 24-48 hours could be critical for determining AVAX’s near-term direction as it tests key resistance levels with increasing momentum.
