AVAX, the native currency of the general-purpose blockchain platform Avalanche is facing a stiff challenge, as it tries to overcome the important $7 resistance level. AVAX bears would be hoping the digital asset, once again, fails to overcome this price and fall back to its recent low around $5.90.
$7 make-or-break level for AVAX
In an X post on Thursday, crypto analyst Master of Crypto remarked that as AVAX trades at $6.76 – just about 3 percent below the $7 level – the cryptocurrency’s price has been making consistent higher-lows.
The creation of consecutive higher-lows on the following 4-hour chart shows that AVAX buyers are slowly but steadily building bullish momentum. The analyst noted that a strong close above the $7 level could confirm a breakout and open the door for further upside.
On the contrary, another rejection from $7 level could send AVAX back to the rising trendline. Meanwhile, things are not looking good for AVAX treasury firms.
On Thursday Avalanche Treasury Corp – also known as AVAT – filed an application with the U.S. Securities and Exchange Commission (SEC), warning that it might not be able to survive the rest of 2026 without raising more funds.
The company’s market cap has slid from over $1 billion in October 2025 to a mere $30 million in July 2026. Notably, the firm’s operating subsidiary lost more than $26 million in a single quarter, raising concerns about its financial health.
It is worth highlighting that it has only been 6 weeks since AVAT listed on Nasdaq with a valuation of $675 million. The company spent $265 million buying AVAX, and the holdings’ total value as of July 2026 is just around $123 million.
In addition, the company has pledged 7.8 million of its 13.8 million AVAX tokens as collateral for loans, meaning that if AVAX continues to fall further, the firm’s financial risks could increase significantly.
Avalanche transactions see uptick
While AVAX’s recent price action might not inspire a lot of confidence among investors, on-chain data shows that the underlying Avalanche network is seeing greater usage. On June 22, it came to light that Avalanche transactions had climbed by 6 times.
At the same time, the blockchain network is also making strides in the payments space. On June 18, the Avalanche Payments Collective went live with 28 organizations, geared toward handling a series of operations including stablecoins and treasury infrastructure.
