Avalanche (AVAX) is testing key support near $7.00 after a triangle breakout, while technical indicators show improving momentum. Derivatives data reveals rising open interest despite lower trading volume, suggesting potential volatility ahead. Meanwhile, asset manager Janus Henderson has become a network validator, adding institutional weight to Avalanche’s push into tokenization and onchain finance.
AVAX is facing a correction as traders watch whether the asset can defend its key support zone. Crypto analyst Crypto With Gopal stated AVAX formed a triangle pattern before breaking out and advancing toward $8.30.
The pullback has shifted attention to the $6.50–$7.00 region as key support. According to the analyst, bulls need to defend this area and reclaim $8.30 to restore stronger upward momentum.
TradingView data shows AVAX consolidated near $7.00 in late August before breaking higher in early September. The breakout lifted the price above $8.10, followed by a correction back toward $7.30.
At the time of analysis, AVAX traded near $7.55 and had reclaimed its major moving averages. The 20 EMA stood at $7.43, while the 200 EMA was at $7.31. RSI reached 57.09, remaining above 50, while bullish divergence signals between September 13 and 16 suggested weakening downside momentum.
With AVAX holding above its major moving averages, the $7.80 region has emerged as the next key resistance. A sustained move above this area could bring the $8.10–$8.30 region back into focus.
CoinGlass data shows AVAX derivatives trading volume dropped 5.87% to $371.90 million, indicating reduced market participation. However, open interest increased by 5.91% to $288.28 million, showing traders maintained or established positions. Rising open interest amid falling volume suggests continuous positioning could trigger significant volatility if AVAX makes a decisive move.
Asset manager Janus Henderson is now a validator on the Avalanche network, participating in its security and operation. The firm also holds an equity stake in Tranched and serves as anchor capital for its issue. Tranched reportedly manages $300 million in on-chain assets with an active deal flow exceeding $3 billion.
