Avalanche [AVAX] extended its bullish push after recording four consecutive days of gains. The rally brought the token closer to reclaiming the $10 psychological level.
More significantly, AVAX broke above a multi-week pennant pattern as momentum and on-chain activity strengthened.
However, the $9 resistance remains the key hurdle separating the breakout from its $10 target.
Can AVAX hold its pennant breakout?
AVAX broke above its pennant resistance near $7.15 after several weeks of consolidation. The breakout followed four consecutive daily gains, reflecting stronger short-term buyer control.
AVAX also traded above its key Exponential Moving Averages, adding support to the bullish structure.
If AVAX holds the former pennant resistance as support, it could challenge $9 before targeting $10. That technical breakout gained additional support from rising activity across Avalanche’s network.
Is Avalanche network activity rising?
Avalanche’s Network DEX Volume reached $141.61 million over 24 hours, marking a new monthly high.
The increase reflected stronger decentralized exchange activity across the network.
However, higher DEX Volume did not independently confirm greater demand for AVAX. Meanwhile, Average Order Size data showed large orders clustered near AVAX’s current price. This suggested that whales were active as AVAX approached resistance.
Even so, Average Order Size could not establish whether those traders were accumulating or distributing. Their direction may become clearer as AVAX tests $9.
Are AVAX longs becoming crowded?
AVAX’s Long/Short Ratio showed that Long Accounts represented approximately 70% of tracked trader positioning.
The reading reflected a significant bullish bias among derivatives traders.
However, the concentration also increased AVAX’s exposure to a Long Squeeze. A sharp rejection near $9 could trigger Long Liquidations and accelerate a short-term pullback.
Therefore, bullish positioning supports the rally while simultaneously creating its clearest leverage risk.
Can AVAX reclaim $10?
AVAX’s pennant breakout, monthly-high DEX Volume, and whale activity strengthened its recovery outlook. However, the token must first clear the $9 resistance.
A confirmed breakout above $9 with stronger Trading Volume could open a move toward $10. By contrast, rejection could return AVAX toward its former pennant resistance.
AVAX escaped weeks of consolidation. Its next argument with the market begins at $9.
Final Summary
- AVAX recorded four consecutive gains and broke above a multi-week pennant pattern.
- Avalanche traded above its key Exponential Moving Averages, supporting its bullish structure.
Credit: Source link
