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Key Takeaways:
- AVAX led all chains with $120M+ in net liquidity inflows over 30 days.
- A breakout from a long-term downtrend and rising funding rates suggest bullish momentum.
- Social chatter and long/short metrics confirm growing market conviction.
Avalanche (AVAX) is back in the spotlight as it leads the crypto market in net liquidity inflows over the past 30 days, attracting more than $120 million—outpacing competitors like Sei (SEI), Aptos (APT), and Unichain. As macro conditions shift and investor risk appetite grows, AVAX is emerging as a frontrunner in the altcoin space.
AVAX Breaks Out of Downtrend Channel
After months of being trapped in a descending channel since December 2023, AVAX has decisively broken out, signaling a significant technical reversal. The breakout is supported by strong volume and tightening price structure—both classic hallmarks of a bullish continuation.
Currently trading at $24.79, up over 9% in 24 hours, AVAX looks poised to challenge the next key resistance at $26.94. If bulls can reclaim that level, it could trigger a momentum rally toward higher targets.
Social Dominance Spikes as Retail Attention Grows
According to Santiment, AVAX’s Social Dominance has surged to 0.729%—its highest level in over two months. This spike suggests a growing wave of retail interest, which often accompanies or precedes price rallies in altcoins.
With price performance and online chatter forming a feedback loop, Avalanche could benefit from increased speculative inflows and a boost in market sentiment.
Funding Rates Flip Positive: A Sign of Bullish Intent
After spending much of Q2 in negative territory, AVAX funding rates have now turned positive. This signals that traders are willing to pay to maintain their long positions—an indication of growing bullish conviction.
Historically, a shift from negative to positive funding has marked turning points in market momentum, often leading to sustained price appreciation.
Binance data shows AVAX’s Long/Short ratio at 3.16, with long accounts making up nearly 76% of positions. While high long ratios can sometimes trigger corrections, current low liquidation levels and balanced funding suggest healthy optimism rather than overexuberance.
Also Read: Avalanche (AVAX) Price Eyes $26 as Grayscale ETF Decision and MapleStory Integration Spark Rally
This setup supports the idea that AVAX could continue gaining, especially if broader crypto market conditions remain favorable.,
Avalanche’s combination of strong liquidity inflows, a confirmed technical breakout, rising social engagement, and improving derivatives metrics paint a bullish picture. The key test lies ahead at the $26.94 resistance level. A clean break and hold above it could open the path to extended upside in Q3.
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 a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
