Avalanche(AVAX) price prediction: With the backing of $1 billion in institutional funds, AVAX is expected to challenge the $40 mark.

Avalanche (AVAX) is becoming the market focus, as its price is breaking through a multi-year downward trend line, while the influx of $1 billion in institutional funds adds momentum to this narrative. As the price rises above $27 and tests key resistance, market participants are closely watching whether AVAX can successfully break through, laying the groundwork for a rally towards $40 or even higher levels. Strong fundamentals combined with doubled volume provide a strong support for this potential breakout.

Price Prediction: Avalanche Approaches Multi-Year Downtrend Line

Avalanche is approaching one of its most critical technological moments in years, with the price nearing a long-term downtrend line that has been suppressing its rebound since 2021. If the weekly closing price can break through $34, it will not only confirm a true breakout but also establish AVAX's first higher high in nearly four years. This structure indicates that momentum is shifting, with the previously resistance downtrend line now being retested as a key hurdle.

Analyst Milk Road pointed out that a larger reversal signal is at $56, and breaking through this level will completely turn the long-term trend bullish. If the current price level can be maintained and gains more volume during the breakout attempt, it will lay the foundation for AVAX to recover lost ground. The chart shows that if these triggering factors can synchronize, there will be ample room for price increases.

Strong Fundamentals: $1 Billion in Institutional Capital Inflow Provides Momentum

The fundamentals of Avalanche are beginning to align with the narrative of technical breakthroughs. Analyst Steven9000 pointed out that recent data shows the network has gained $1 billion in institutional funds from treasury companies and has established an increasing number of partnerships with traditional financial (TradFi) giants. In terms of on-chain data, despite cautious market sentiment, the total value locked (TVL) of the network remains stable, and on-chain activity is slowly increasing, indicating that users are becoming more deeply involved.

The combination of these three provides stronger support for AVAX approaching the key resistance level:

• $1 billion institutional fund inflow from Caiku Company.
• The price is gaining momentum to recover the $25 level.
• TVL steadily grows, supporting ecosystem development.

As U.S. policies become increasingly favorable towards cryptocurrencies and with potential expectations for interest rate cuts, the macro environment may also provide additional support for AVAX. If Avalanche can combine strong fundamentals with attempts at technical breakthroughs, then the path to reclaim higher ranges such as $34 and $56 will become more realistic.

Volume doubles, providing fuel for price increase

The latest data from Marc Shawn Brown shows that the daily trading volume of Avalanche has doubled in the past month, highlighting a significant shift in market participation. This increase in activity is often the basis for stronger price movements, as liquidity deepens and traders' confidence grows. This comes as AVAX is testing key resistance levels, and higher trading volume can provide the fuel needed for a strong breakout.

From a broader perspective, the surge in trading volume indicates that both retail and institutional investors are re-entering the market, which aligns with the recent bullish narrative surrounding institutional capital inflows and network adoption. If the trading volume can remain high, it will provide a solid foundation for AVAX's upward movement.

Conclusion

Avalanche's price prediction is at a critical turning point, with technical and fundamental forces beginning to align. As the price continues to hit a multi-year downward trend line and the volume doubles, its upward momentum is clearly building. If the AVAX price can close and hold above the key level of 34 dollars, its pattern will rapidly shift to a more convincing bullish phase. Bulls need a clean breakthrough to confidently set their targets in the range of 40 dollars to 56 dollars, while broader macro changes will also play a role in this process.