Avalanche clears key hurdle after 8 rejections: Can AVAX reach $32?
AVAX clears key hurdle after multiple rejections, and its price action hints at a 20% rally.
Key Takeaways
A potential rally will only be possible if AVAX closes the daily candle above the $26.75 level. However, as profit-taking rises, the altcoin’s rally might be in jeopardy.
After multiple rejections since the beginning of 2025, Avalanche [AVAX] has finally cleared its long-awaited hurdle, hinting at a potential reversal. This comes after the token climbed 4.5% over the past 24 hours.
At press time, AVAX hovered near the $26.75 level, with strong participation from traders and investors. Data from CoinMarketCap showed that AVAX’s 24-hour trading volume jumped 50% in the last 24 hours.
The rising trading volume, along with the price breaching a key level, shows strong upside momentum in the asset and hints at strong interest from crypto enthusiasts.
Mapping Avalanche’s upcoming levels
AMBCrypto’s technical analysis found that AVAX’s daily candle has broken out of the key resistance level at $26.60.
This breakout comes after eight rejections since January 2025, which has now opened the path for a massive price uptick.
The current price action suggests that AVAX’s breakout can only be validated if the daily candle closes above the $26.75 level.
If this happens, there is a strong possibility that the asset could gain 20% upside momentum, pushing the price toward $32. If it fails, history may repeat itself and the price could face downside momentum.
At press time, the Average Directional Index (ADX) on the chart held a value of 15, suggesting that AVAX was in a weak trend. Typically, when such a value appears on the chart during a breakout or breakdown, it fails.
On-chain data hints mixed signals
Investors appeared to be booking profits as AVAX rose. On-chain analytics tool CoinGlass revealed that over $4.86 million worth of AVAX had moved into exchanges over the past 24 hours.
This consistent inflow of assets into exchanges hinted at a potential dump and may slow down the asset’s upside momentum.
On the other hand, traders seemed to be following the current trend by betting strongly on long positions.
At press time, AVAX’s major liquidation levels were at $25.48 on the lower side and $27.36 on the upper side.
At these levels, traders have built $23.75 million worth of long positions and $6.87 million worth of short positions, making it clear that bulls are dominating the asset.
