The Avalanche (AVAX) ecosystem has continued to attract investor attention in recent weeks, even as broader market conditions remain subdued. On February 10, overall crypto market activity saw a noticeable slowdown. However, Avalanche diverged from the broader trend, maintaining strong capital inflows and rising network participation.
According to recent on-chain data, Avalanche recorded approximately $135 million in monthly net inflows, placing it among the top-performing blockchains in terms of capital rotation. Weekly net inflows climbed to around $60 million, while daily inflows reached roughly $7 million, positioning Avalanche fourth in weekly and daily capital rankings across major chains.
Such consistent capital movement suggests that liquidity is not exiting the ecosystem despite price weakness — an important distinction when assessing structural strength versus short-term volatility.
Active Addresses Surge Despite Price Pressure
Beyond capital inflows, Avalanche’s user activity metrics show notable expansion. Since early January, active addresses on the AVAX network have increased by more than 242%, surpassing previous 2024 highs and establishing new participation milestones.
Data from Token Terminal indicates that monthly active addresses have exceeded 1.6 million, while daily active addresses on the C-Chain briefly climbed above the 1.6–1.7 million range on February 10.
What makes this development particularly noteworthy is that it occurred while AVAX’s market price continued to decline. Typically, falling prices reduce user engagement. In this case, however, network usage expanded — signaling a classic divergence between price action and on-chain fundamentals.
Such divergences often precede structural turning points, as sustained user engagement can gradually translate into stronger long-term demand dynamics.
Structural Support Under Pressure but Selling Momentum Weakens
From a technical perspective, AVAX remains in a challenging position. The asset has declined more than 84% from its October peak before stabilizing within the $8.85–$11.86 support range.
As price approached the $8 region, selling pressure began to show signs of exhaustion. Momentum indicators reflect this shift: the MACD recently formed a bullish crossover near support, while the Relative Strength Index (RSI) dropped into deeply oversold territory around 29.87.
An RSI reading below 30 often signals potential bottoming conditions. However, isolated technical signals are not sufficient to confirm a sustained trend reversal. For a durable recovery to materialize, trading volume would need to expand consistently, confirming renewed buyer conviction.
Without volume confirmation, any rebound could remain vulnerable to failure.
Liquidity Concentration Between $10–$12
Liquidation data from the past two weeks suggests that lower liquidity pockets have largely been absorbed. Current liquidity clusters appear concentrated in the $10–$12 price range.
This concentration does not necessarily imply bullish sentiment; rather, it reflects market mechanics. Market makers and large participants typically gravitate toward high-liquidity zones for efficient order execution. As a result, price volatility near these levels may increase as liquidity is tested.
With liquidity positioned above the current price, the market may attempt to move upward to engage those pools. Whether this triggers a sustained breakout or merely short-term volatility remains to be seen.
While AVAX’s price structure remains technically fragile, strengthening on-chain participation, steady capital inflows, and concentrated liquidity zones suggest that probability for increased volatility — and potentially upside — is building.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before making financial decisions.
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