|
Getting your Trinity Audio player ready...
|
- AVAX breaks $26.60 resistance after eight failed attempts.
- Trading volume jumped 50% as bullish momentum builds.
- Profit-taking and low ADX pose risks despite long dominance.
Stay ahead with real-time updates and insights—Join our Telegram channel!
After months of repeated rejections, Avalanche (AVAX) has finally broken through its long-standing resistance level, signaling a potential trend reversal. The token surged 4.5% over the past 24 hours and is currently trading around $26.75. According to CoinMarketCap, AVAX’s 24-hour trading volume has also soared by 50%, reflecting renewed enthusiasm from traders and investors.
This surge in trading activity and price movement indicates that bullish momentum could be building up across the Avalanche network.
Technical Indicators Suggest Breakout Potential
AMBCrypto’s technical analysis shows AVAX’s daily candle breaking past the crucial $26.60 resistance level — a barrier that had rejected the token eight times since January 2025. If the daily candle closes above $26.75, it could confirm a bullish breakout and spark a 20% upside move toward the $32 mark.
However, the Average Directional Index (ADX) stands at a low 15, indicating a weak trend. Such low ADX readings often result in failed breakouts if momentum fades.
On-Chain Data Reveals Mixed Signals
While market sentiment appears bullish, on-chain data suggests caution. Analytics from CoinGlass show over $4.86 million worth of AVAX moving into exchanges within the past 24 hours — a sign that some investors may be preparing to take profits.
At the same time, long positions heavily outweigh short bets, with $23.75 million in longs versus just $6.87 million in shorts. This shows bulls are currently dominating market positioning, with major liquidation levels seen at $25.48 and $27.36.
AVAX Bulls Face Critical Test
AVAX is now at a decisive point. A daily close above $26.75 could ignite further gains toward $32, while failure to hold could trigger another rejection and potential pullback. For now, bulls appear in control, but profit-taking pressure could still disrupt the rally.
Stay ahead with real-time updates and insights—Join our Telegram channel!
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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
