Reasons for AVAX price surge revealed

Avalanche holders finally have reason to look happy. AVAX rose 8% today, with its offer exceeding $6.70. The token has been mired in a downward channel since its 2025 high (above $50), but today's market is one of the strongest one-day rallies in weeks.

The overall cryptocurrency market has mixed signals. Bitcoin remains at around US$65,000, and altcoins are generally green. But AVAX performed particularly well today. Next, let's explore the drivers of AVAX price increases.

Avalanche's RWA market grew 22.6% to US$2.5 billion

Avalanche's physical assets (RWA) market size grew 22.6% to US$2.5 billion, according to RWA.xyz. Among them, tokenized U.S. Treasury bonds on Avalanche surged 68% to $842 million in 30 days.

The entire RWA track is heating up. XRPLedger added US$2.6 billion in tokenized RWA value in six months, ranking second behind BNB Chain. Avalanche, on the other hand, is quietly building its own RWA ecosystem, and its growth rate is accelerating.

This reflects the general trend of institutions moving towards token transfer of blockchain assets. Avalanche's subnet architecture and its focus on the institutional market make it a natural choice for RWA projects. The US$2.5 billion market size confirms the network's expanding influence in this emerging field.

Michael van de Poppe: "AVAX performed fairly solidly"

Analyst Michael van de Poppe commented on Avalanche's recent price movements. "AVAX performed fairly solidly," he said. Although the pattern has not yet been completely completed, based on this rebound, I am satisfied with my current holding of the asset and will continue to hold it."

The charts he shared show that AVAX is forming higher lows as support. Price movements suggest that the token is bottoming out after a long decline. A bullish divergence on the daily chart is another positive sign that momentum is tilting towards buyers.

The chart also shows a target area of around $8.50 -9.00, which is consistent with the 0.382-0.5 Fibonacci retracement level. Van de Poppe is clearly optimistic about AVAX's medium-term prospects.

Where may Avalanche prices go next?

Technical analysis shows that AVAX breaks through the short-term decline channel on the 4-hour chart. Supertrend and MACD indicators sent bullish signals, confirming the breakthrough. The short-term trend has shifted from bearish to neutral, and bulls are trying to regain control.

However, the weekly chart remains bearish. Prices are still trapped in a long-term downward channel. The daily chart shows higher lows as support, but the overall structure remains weak.

Key levels to pay attention to: direct resistance: US$6.70 -6.80-if the close breaks through this area, it is expected to test US$7.20; next resistance: US$8.00 -8.50-corresponding to the target area in van de Poppe's chart; Support: US$6.20 -6.30-recently formed higher lows; main support: US$5.80-if the higher lows are broken.

Bullish scenario: If AVAX volume closes above $6.80, the next target is $7.20, followed by $8.00 -8.50. RWA growth and van de Poppe's endorsement could provide fundamental support for a rebound.

Bear scenario: If AVAX loses $6.20, the higher low structure will fail. The next support is at $5.80, followed by recent lows around $5.50.

Overall, Avalanche is showing life after months of selling pressure. The 8% increase is a relief rebound, but if the RWA narrative continues to ferment, it may be the starting point for a bigger market.

Avalanche's RWA market grew to US$2.5 billion, which is a real catalyst. Tokenized U.S. Treasuries rose 68% in 30 days, an important signal. Institutions are being laid out on Avalanche.

Van de Poppe's confidence is worth noting. He is one of the few analysts who continue to be bullish on AVAX, and his "higher lows" judgment is being verified.

Short-term trends are too many, and weekly trends are still empty. The key position is $6.80. A close firm at this level would be the strongest signal AVAX has sent in weeks.