Investors, Watch Out For These AVAX Price Levels

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.

Avalanche (AVAX) price has been largely subdued since the beginning of 2025, reflecting the climate of the altcoin market so far in the new year. After reaching a local high of $55 in early December 2024, the Avalanche token has been in a steady decline, reaching as low as $32.2 on Wednesday, January 29.

However, In a new analysis by Ali Martinez, a popular crypto analyst for X platform, revealed the key on-chain levels that could prove pivotal to the future trajectory of AVAX price. This on-chain observation focuses on the average cost basis of several Avalanche investors.

In cost-basis analysis, a zone’s capacity 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.

Highlighting the crucial support level, around 302,100 addresses purchased approximately 14.26 million AVAX tokens within the price range of $34.01 and $35.15, as shown by data from IntoTheBlock.

"This is the total amount of AVAX last purchased by investors, and it can serve as either support or resistance,” said the crypto analyst. "In this case, it is acting as support for the rally."

According to Martinez, this has led to the formation of a crucial support cushion within this price region. The rationale is that 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.

"The $34.5 region is able to act as a crucial support level due to the number of investors with their cost basis in and around it,” explained Martinez.

"The thinking here is that 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."

Moreover, 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.

Highlighting the crucial resistance level, the crypto analyst noted that 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,” said Martinez.

"This scenario could be crucial in either slowing down or stopping the bullish momentum that began around $33.7 – $34.5."

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 stands at 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.