Animoca Brands Invests in Avalanche — Can AVAX Finally Break $10?

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• Animoca Brands announced a strategic investment and partnership with Ava Labs.
  
• AVAX rebounded after briefly falling below key support near $9.
  
• Traders are closely watching resistance zones between $9.75 and $10.

Global digital assets firm Animoca Brands has expanded its presence in the blockchain sector through a new partnership with Ava Labs, signaling renewed confidence in the Avalanche ecosystem despite recent market volatility.

The collaboration, announced on May 19, includes a strategic investment in Avalanche and additional advisory and business development support aimed at accelerating real-world blockchain adoption. The move places Avalanche back in the spotlight as competition among Layer-1 networks intensifies.

Animoca Brands Deepens Its Web3 Expansion

Animoca Brands has continued to position itself as one of the most active investors in blockchain infrastructure, gaming, and digital ownership. Its latest partnership with Ava Labs highlights Avalanche’s growing appeal as a scalable blockchain network capable of supporting enterprise and consumer-facing applications.

According to the announcement, the partnership will focus on leveraging Avalanche’s infrastructure to support broader Web3 adoption. The network has increasingly marketed itself as a high-speed, low-cost blockchain designed for tokenization, gaming, and decentralized applications.

The news initially triggered mixed market reactions. AVAX slipped from $9.38 to roughly $9.02 shortly after the announcement, reflecting broader caution across the crypto market. However, buyers quickly returned near the key $9 psychological support level, helping the token recover around 4%.

AVAX Struggles to Break Long-Term Resistance

Despite the rebound, AVAX remains trapped within a broader consolidation range that has persisted since February. Bulls have repeatedly failed to push the token above the $10.34 resistance zone, with failed breakout attempts recorded in both March and May.

Technical indicators suggest the market remains indecisive. Trading activity has gradually declined over the past three weeks, showing that many investors are still waiting for stronger confirmation before entering new positions.

Volume profile data points to $9.28 as a major area of interest for traders, while $9.75 continues to act as a key resistance level. If AVAX manages to reclaim that zone, analysts believe momentum could build toward the $10 mark again.

Traders Watching the $9 Support Closely

Short-term price action suggests traders are closely defending the $9 level. On the 4-hour chart, repeated rebounds from this zone indicate buyers still view it as an attractive entry point.

However, momentum indicators are flashing caution signs. The Money Flow Index has approached local highs even as price gains remain limited, raising concerns about weakening buying pressure.

Also Read: Avalanche Jumps 13% After CME Futures News—But Can AVAX Break $9.60?

For now, analysts expect AVAX to remain rangebound unless a major catalyst drives stronger demand. Traders appear focused on short-term bounces between $9 and $9.75 while closely monitoring whether support can continue holding.

The Animoca Brands and Ava Labs partnership adds fresh institutional credibility to the Avalanche ecosystem at a time when the network is fighting to maintain bullish momentum. While the announcement reinforces Avalanche’s long-term Web3 ambitions, AVAX still faces technical hurdles before a sustained recovery can take shape. In the near term, the $9 support level remains the market’s most important battleground.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.