AVAX Price Targets $48 as DeFi TVL Approaches 3-Year High

Avalanche (AVAX) has recorded a price increase of 4.21% today, July 21, to trade at $25, its highest price in two months. Because of these gains, AVAX price is now trading close to the resistance of a double bottom, and if it can make a strong move above this resistance, considering that network activity is rising, it might rally by 82% to the highs last seen during the last quarter of 2024.

AVAX Price Targets 80% Double-Bottom Breakout Rally

The gains by ETH price this month have not only boded well for most altcoins, but also caused the recovery of layer one tokens that were previously performing poorly. AVAX is one of these tokens, and it is showing signs of performing well during the third quarter of 2025 as the crypto market rises, because of the weekly setup that shows bullish traders are slowly regaining control.

These traders are likely trading the double bottom that was established when the AVAX price confirmed support at $14.75 during two downtrends. When the price dropped to this support level in April 2025 and again in June, it bounced back up, making it likely that buyers were accumulating at that level.

Following the gains that the Avalanche price has recorded over the last month, bulls are targeting the resistance at $26.88, which will be used to confirm if the bullish momentum is strong enough to support a long-term rally.

The surge from the support level of $14.75 to the $26.88 resistance is nearly a twofold increase, and if buying pressure pushes the price above this hurdle, another 82% surge to $48 could occur. At $48, AVAX price will be trading at its highest level since December 2024, indicating that the double bottom rally will be the same as the gains recorded in Q4 2024.

The chances of AVAX repeating the same rally it made between October 2024 and December 2024 are also high because currently, the RSI is making the same crossover that it did last year. The indicator’s move above 50 for the first time since January shows that buyers have become increasingly active, and this affirms a bullish Avalanche price prediction.

Avalanche DeFi TVL Hits $1.89B

As aforementioned, layer one networks are benefiting from the ongoing Ethereum rally, and the evidence for this lies in the rapid increase in the DeFi TVL for the Avalanche blockchain. According to data from DeFiLlama, Avalanche has seen its TVL increase from $1.38 billion to $1.89 billion within one month, which is a 37% increase.

This rising activity is also bullish for the AVAX price because it could boost confidence about the token sustaining its gains in the long term, even if the current buying pressure subsides. Moreover, when more people are using the network, the demand for AVAX also rises, and this might also be a factor that will influence gains in the future.

Therefore, AVAX, currently ranking as the 16th largest crypto by market cap, could record higher gains than other tokens as traders continue to buy, anticipating gains from the double bottom. The soaring network activity will boost this surge in price.