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Avalanche (AVAX) has overcome a significant technical hurdle after facing eight rejections earlier this year, hinting at a potential rebound in the altcoin’s price. Over the past 24 hours, AVAX surged 4.5%, demonstrating renewed interest from traders and investors.
At the time of writing, AVAX hovered around the $26.75 level, coinciding with a 50% increase in 24-hour trading volume according to CoinMarketCap. The rising activity signals strong upside momentum and growing enthusiasm within the crypto community.
Technical Analysis: AVAX Breaks Out After Months of Resistance
Technical charts show that AVAX’s daily candle has successfully broken above the $26.60 resistance level. This breakout is particularly notable given the multiple rejections the altcoin faced since January 2025. Analysts suggest that if the daily candle closes above $26.75, AVAX could gain up to 20% in value, potentially reaching the $32 mark.
However, caution is advised. The Average Directional Index (ADX) currently reads 15, indicating a weak trend. Historically, low ADX values during breakout periods often lead to false moves, meaning AVAX’s rally is not guaranteed without sustained buying pressure.
On-Chain Activity Shows Mixed Signals
While bullish momentum is evident, on-chain data highlights some profit-taking among investors. Analytics platform CoinGlass reported that over $4.86 million worth of AVAX moved into exchanges in the last 24 hours. Such inflows may indicate potential sell pressure, which could slow the asset’s upward trajectory.
Despite this, traders are actively betting on long positions. Current liquidation levels show $23.75 million in long positions versus $6.87 million in shorts. The data suggests that bulls are largely controlling the market, with key support and resistance levels at $25.48 and $27.36, respectively.
Looking Ahead: AVAX’s Next Targets and Risks
If AVAX maintains its momentum and the daily candle closes above $26.75, technical indicators suggest a possible rally toward $32. This scenario would mark a 20% upside from current levels, offering traders an attractive risk-reward opportunity.
Conversely, failure to hold above $26.75 could lead to another period of consolidation or a potential decline. The mixed signals from exchange inflows and ADX readings highlight the importance of monitoring both on-chain metrics and broader market sentiment before making trading decisions.
Conclusion
Avalanche’s recent price action indicates that AVAX is attempting to reverse months of rejections, with the $26.75 daily candle close serving as a critical benchmark. While bulls currently dominate the market, traders should remain cautious of profit-taking and market volatility. Should momentum persist, AVAX may see a strong run toward $32, signaling renewed optimism for the altcoin’s short-term outlook.
