Avalanche (AVAX) is poised for a breakthrough as activity on the C-chain hits a yearly peak.

Avalanche (AVAX) recorded a slight increase of 1% on Thursday, approaching the peak of the bullish triangle pattern, as traders eagerly await the early results. Development activity on Avalanche's C-chain also reached its highest level of the year with 2 million transactions in just one Sunday.

Notably, the Avalanche Foundation is striving to further promote development through incentive programs, notably the Retro9000 Cohort 2, promising to bring new momentum to the ecosystem.

Avalanche Foundation promotes development activities with 250,000 USD in grants

Data from Snowtrace shows that the C-chain of Avalanche – the dedicated layer for smart contracts and decentralized applications (dApps) – has just reached a record milestone this year with 2 million transactions in just one day on Sunday. This surge in transactions reflects the strong pace of activity from developers as they continuously deploy new dApps and smart contracts on the platform.

Avalanche's C-chain trading is booming | Source: SnowtraceAt the same time, the Avalanche Foundation announced a $250,000 grant for eight potential projects, funded by the Retroactive9000 fund worth $40 million. This fund, launched at the end of 2024, had previously supported more than 19 projects with a total value of over $1 million in June, continuing to drive development and innovation in the Avalanche ecosystem.

AVAX at the crossroads as it approaches the peak of a bullish triangle pattern

AVAX is moving within a bullish triangle pattern on the daily chart (see the illustration below), originating from the support line drawn by the lows of June 22 and August 3. This recovery has occurred consecutively over three sessions, with the bulls aiming for the resistance zone around 26 USD – the top of the triangle – highlighted in yellow on the chart.

If AVAX maintains its recovery momentum and clearly breaks through this resistance zone, the bullish scenario could continue, extending to the level of 32 USD, corresponding to the pivot R2 level.

AVAX/USDT daily chart | Source: TradingViewAnother positive signal comes from the technicals: The 50-day EMA is approaching the 200-day EMA, forming a golden cross – a strong indication for a bullish short-term trend, with the potential to reverse the current slowdown.

However, the momentum indicators remain neutral on the daily timeframe. The MACD line and the signal line of the MACD indicator are moving almost flat above the 0 level, "intertwined" with each other, while the RSI at 52 remains above the midline, reflecting a cooling phase in buying pressure.

On the contrary, if AVAX breaks below the 200-day EMA at 23.49 USD – coinciding with the support line – the triangle pattern will become invalid, leading to a deeper correction towards the central pivot level at 19.82 USD.

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