AVAX broke above a multi-month descending resistance, reclaiming key levels like the value area high and point of control—signaling a potential bullish reversal is in play.
Volume increased during the breakout, suggesting real buyer interest rather than a short squeeze, with analysts eyeing a move toward $28.70 if momentum continues.
The next key step is whether AVAX can form a higher low above the flipped resistance zone—if not, the risk of a false breakout and return to the previous range increases.
Avalanche (AVAX) might finally be shaking off the cobwebs.
After months of sliding around under the weight of a descending resistance line—one that’s been pressing on the price since way back in February—AVAX just snapped through it. And not quietly either. It was a clean break. Sharp. Intentional. Like buyers were done playing defense.
A Classic Reversal Setup
This move didn’t come outta nowhere. Right before the breakout, AVAX pulled off what’s known as a swing failure pattern—basically a fakeout to the downside that traps bears, only for bulls to come roaring back. Textbook reversal stuff.
Then it reclaimed two key levels: the value area high and the point of control from the previous range. That kind of double reclaim? That’s not noise—it’s structure. It suggests this breakout might actually have legs.
TL;DR: buyers showed up in force, and they weren’t messing around.
🔲 Now all eyes on: can it hold and form a higher low?
That’s the next piece of the puzzle. If AVAX can manage to stay above that flipped resistance zone and lock in a higher low, we could be staring at a legit macro trend reversal.
Volume’s Got a Story Too
And here’s something traders always wanna see—volume’s picking up. Not just a tiny bump. We’re talking real participation during the breakout. That rules out the “meh, just a short squeeze” theory and leans into a more sustainable rally thesis.
So where’s it all heading?
If things hold steady, we could be looking at a rotation toward $28.70, a level that’s acted like a brick wall in past cycles. Bust through that—and then we’re really talking momentum.
But… Let’s Not Get Ahead of Ourselves
Of course, none of this is guaranteed. If AVAX slips back below the breakout zone? Yeah, that could mean it was all a fakeout, and we’re right back inside the old range. No breakout, no trend flip. Just more chop.
So—like always—watch the price action. Watch the volume. See if that higher low forms. If it does? The bullish structure’s confirmed. If it doesn’t… back to the range-bound grind we go.
Drop Gorn enjoys watching anime and reading Manhwas and Light novel. Constantly honing his Forex trading and Video editing skills. When seeking moment of peace, rock music is his comfort.
