Avalanche’s DeFi TVL hits $488.5 million, AVAX price targets $8.41 breakout

AVAX price holds above support, eyes breakout

AVAX is currently trading at $7.40, recording a 1.75% gain in the last 24 hours, accompanied by a 24-hour trading volume of $170.36 million and a market capitalization of $3.2 billion. The price structure, paired with recent growth in total value locked (TVL), points to a possible bullish reversal as the market seeks direction.

CryptoJack, a crypto analyst known for technical market insights, observed a potentially bullish pattern for AVAX on the four-hour chart, drawing attention from traders awaiting larger price movements. According to his analysis, current momentum may strengthen if buyers keep supporting key price levels while resistance areas weaken.

CryptoJack highlighted that, if momentum continues and resistance is overcome, bullish sentiment could accelerate and drive AVAX toward the $8.41 level in the coming sessions.

Market participants are closely watching immediate resistance zones as AVAX attempts to break out. Failure to cross these resistance points could lead to further consolidation or a renewed effort to break higher at a later stage.

DeFi ecosystem growth drives TVL higher

Avalanche’s decentralized finance (DeFi) ecosystem is experiencing renewed growth in participation, with MSB Intel reporting a total value locked (TVL) of $488.5 million. TVL measures the total capital users have deployed in DeFi protocols such as decentralized exchanges, lending platforms, and liquidity pools operating on the Avalanche network.

An increase in TVL is generally viewed as a reflection of rising user confidence in the network’s DeFi projects. More liquidity on Avalanche is expected to support higher transaction volumes, growth in decentralized applications (dApps), and further development of lending and borrowing protocols. Sustained gains in TVL could also improve sentiment among AVAX holders, provided that network activity continues to advance.

Mini dictionary: Total Value Locked (TVL), a metric that measures the total amount of digital assets deposited in DeFi protocols, indicating user engagement and ecosystem growth on blockchain networks like Avalanche.

However, analysts emphasize that TVL can fluctuate based on multiple factors, such as token price changes and shifting market conditions, so monitoring adoption and liquidity remains essential. The attempted breakout above resistance levels is seen as the next potential sign of bullish momentum for AVAX, with the $8.41 target under close observation.

If the current bullish setup continues and resistance is breached, AVAX may rally further, boosted by its strengthening DeFi ecosystem. In contrast, a breakdown below support or failure to overcome resistance could slow or reverse recent gains.