AVAX Price Action Hinges on Two Key Levels – Here's What Investors Should Do

The AVAX price has been mostly quiet since the start of 2025, mirroring the climate of the altcoin market so far in the new year.

Investors in the cryptocurrency market have been closely monitoring the price action of Avalanche (AVAX) following a significant decline observed in the latter half of 2024. As AVAX price attempts to recover from the decline, several key on-chain levels have emerged, potentially impacting the token’s future trajectory.

According to popular crypto analyst Ali Martinez, who shared his findings in a recent post on the X platform, these on-chain levels are pivotal to the future movement of AVAX price. Martinez's analysis specifically highlights the average cost basis of several Avalanche investors at different price points.

In cost-basis analysis, the capacity of a zone to serve as support or resistance depends on the total amount of tokens last purchased by investors at the level. As shown in the chart below, the size of the dot represents and is directly proportional to the number of AVAX tokens acquired within each corresponding price range.

As highlighted by Martinez, one crucial observation is the presence of a significant support cushion within the $34.01 – $35.15 price range. This price region boasts a large concentration of investors, with around 302,100 addresses purchasing approximately 14.26 million AVAX tokens, as indicated by data from IntoTheBlock.

The formation of this support level can be attributed to the substantial number of investors who acquired AVAX tokens at these prices during the token’s bull run in 2024. When the AVAX price returns to $34.5, investors with their cost basis around this zone are likely to double down and defend their position by acquiring more tokens, allowing prices to quickly recover from this support level.

Furthermore, IntoTheBlock data shows that the $39.49 – $40.54 price bracket is currently thick with investors. According to data from IntoTheBlock, more than 233,000 addresses bought over 12.33 million AVAX between the price range.

This $39.49 – $40.54 price region is a major resistance zone because investors are always likely to make a move when an asset returns to their cost basis. In this scenario, investors who were in the red before may want to quickly sell their holdings as soon as they enter profit, which could place downward pressure on the AVAX price.

The price action of the AVAX around two regions could make or mar its performance over the next few weeks. Hence, investors might want to pay extra attention to the altcoin whenever it approaches these support and resistance zones.

At the time of writing, the price of AVAX is around $34.8, reflecting a mere 1% increase in the past 24 hours. The premier cryptocurrency’s performance is even more sluggish on larger timeframes. According to data from CoinGecko, the Avalanche is down by nearly 3% in the past seven days.