AVAX stands out due to its practical applications, particularly in the real asset Tokenize (RWA) sector, amidst a crypto market that has just experienced a downturn and is showing signs of recovery.
In January 2026, the cryptocurrency market weakened but showed signs of recovery in February. Amidst fragile sentiment, Avalanche continues to demonstrate resilience thanks to development activities, whale funding, and new impetus from its ETF product, raising questions about its ability to drive the price upwards.
- Avalanche experienced strong growth in its RWA segment, with its Tokenize asset TVL reaching $1.3 billion in Q4/2025.
- AVAX bounced up from the $10 support zone, while whales were aggressively accumulating around this price level.
- VanEck's AVAX crypto ETF recorded $1.24 million in net inflows in its early days, indicating institutional interest.
Avalanche is in a bullish zone, with $14.50 as the nearest resistance level.
AVAX has returned to the $10 support zone and is showing signs of price stabilization; if it surpasses $11 and breaks through $14.5, the recovery momentum could be strengthened.
On January 3rd, Avalanche returned to a key price zone around $10. After failing to hold above $11 at the end of January, AVAX fell to this support zone on January 31st.
At $10, AVAX shows signs of remaining momentum, as this is a price level the coin hasn't touched since 2023. Attempting to create a Dip and hold support is often XEM as the first step in forming a price base.
In that context, local resistance is noted at $14.5. Structurally, breaking above nearby levels ($11 and $14.5) is generally more important than distant targets, as it confirms sufficiently strong buying demand to absorb short-term supply.
Avalanche leads in RWA adoption, growing 68.6% in Q4/2025.
Tokenize of real assets on Avalanche increased by 68.6% in Q4/2025, bringing the TVL of this segment to $1.3 billion, becoming a key "adoption" pillar for the ecosystem.
Despite the crypto market weakening in January 2026, Avalanche demonstrated resilience thanks to its real-world application story. The focus is on real-world asset Tokenize (RWA), a segment often XEM as a bridge between traditional finance and blockchain infrastructure.
In Q4/2025, the value of Tokenize assets on AVAX increased by 68.6% and TVL reached $1.3 billion, supported by BlackRock and FIS according to the findings mentioned in the original text. This is noteworthy data because RWAs are typically associated with long-term use cases rather than just short-term speculation.
From a "success measurement" perspective, the level of adoption is often more significant than instantaneous price fluctuations. As the amount of physical assets brought onto the chain increases, the demand for infrastructure (transactions, security, integration) can also increase, thereby enhancing the network's competitive position in the L1 market.
AVAX 's development activity ranked third as of February 3, 2026.
As of February 3, 2026, AVAX ranked third in development activity, behind only HBAR and LINK, demonstrating that construction momentum remains strong despite market volatility.
Development activity is often used to assess the level of technical contribution, upgrades, and vitality of the ecosystem. According to the original content, on February 3rd, AVAX ranked third in development activity, after Hedera (HBAR) and Chainlink (LINK).
This indicator doesn't guarantee an immediate price increase, but during a period of fragile market sentiment, stability in development can help bolster confidence among the community and long-term investors.
Whales are consolidating strongly around $10, creating potential upward momentum.
Spot order data shows whales buying aggressively around the $10 support level, while retail investors remain hesitant, increasing the likelihood of a rebound.
The original text indicates a surge in whale activity on AVAX , based on the spot average order size chart from CryptoQuant. The main interpretation is that whales are aggressively accumulating near the $10 support zone, reminiscent of the pattern observed during the 2021 downturn.
In actual trading, when Medium buy orders increase at support levels, this often reflects large wallets taking on risk to accumulate holdings at what they consider "deep pricing." If the buying pressure is strong enough to counteract the selling pressure, the price may form a base and bounce up to nearby resistance levels.
VanEck's crypto ETF AVAX recorded an initial net inflow of $1.24 million.
The AVAX crypto ETF, launched by VanEck on January 27th, attracted $1.24 million in net inflows as of January 31st, signaling early-stage institutional interest.
AVAX became a hot topic after VanEck launched its ETF on January 27th. By January 31st, the fund had recorded $1.24 million in net inflows based on its original content.
Although this number is not yet large, it is significant in terms of " Capital flow direction": ETF products help a group of investors access assets in a more familiar framework. If interest expands, ETFs could become a channel to create additional demand during favorable market conditions.
AVAX price scenario: opportunity for a sharp increase but risk of losing the $10 support level.
AVAX could surge if it holds above $10 and market sentiment improves, but if it falls below $10, there's a risk of it dropping to $8.79 as outlined in the original text.
To summarize the main point in the conclusion of the original content: with institutional and whale backing, AVAX “could” aim for significant gains; at the same time, volatility from Bitcoin could disrupt the upward momentum.
Regarding risk, the original text clearly states that if the $10 mark is broken, AVAX could fall to $8.79. Therefore, the $10 level serves as both a psychological support point and an important technical threshold to monitor.
Regarding opportunities, the original text mentions the possibility of the price reaching $400 as a bullish scenario. This is a hypothetical target, dependent on maintaining RWA adoption, improving Capital flows, and overall market conditions, particularly Bitcoin volatility.
Frequently Asked Questions
What is supporting AVAX's "adoption" narrative?
A key highlight is the 68.6% increase in real asset Tokenize (RWA) on Avalanche in Q4/2025, with TVL reaching $1.3 billion in native content, demonstrating its adoption beyond speculation.
Why is the $10 mark XEM a key area for AVAX?
The original text describes $10 as a crucial support zone as AVAX returns to price levels not seen since 2023, and whales are increasing their accumulation around this area, making it a decisive threshold for a recovery scenario.
What does the AVAX crypto ETF mean for cash flow prospects?
VanEck's AVAX ETF launched on January 27th and recorded $1.24 million in net inflows as of January 31st, indicating early institutional interest that could expand if the trend continues.
Which downside risks are mentioned in the original text?
The original text stated that volatility from Bitcoin could affect the upward momentum, and if AVAX loses the $10 mark, it could fall to $8.79.
