By cryptoadmin 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.