Avalanche (AVAX) Technical Analysis Points to Continued Uptrend
Avalanche’s native token AVAX has officially broken out of its recent consolidation phase, showing signs of a bullish breakout supported by strong technical indicators. Over the past 24 hours, AVAX climbed by 0.8%, while broader market sentiment remained cautious, as seen with the CoinDesk 20 index falling by 0.4%.
This breakout indicates the end of an accumulation zone and hints at a potential sustained uptrend as the asset tests key resistance levels.
Support and Resistance: Key Price Levels for AVAX
The recent price action reveals critical market behavior:
- Consolidation Range: AVAX was previously trading between $17.13 and $17.35, a narrow band indicating market indecision.
- Breakout Support: The breakout was confirmed by strong trading volume, establishing solid support at $17.07.
- Resistance Levels: The token tested resistance at $17.63 multiple times, a clear sign that the market may be preparing for a breakout above this level.
AVAX also demonstrated a series of higher lows, a classic indicator of a strengthening upward trend. This price behavior supports the theory that the consolidation phase has completed, and the token is now entering a new bullish cycle.
Volatility and Volume: Momentum Builds for Avalanche
In terms of short-term movement:
- AVAX surged from $17.37 to $17.45, marking a 0.50% gain during an active trading window.
- A temporary pullback to $17.36 formed a double bottom pattern, often viewed as a bullish reversal signal.
- The final price action showed a bounce from $17.37 to $17.46, accompanied by rising volume, indicating renewed buyer interest.
These developments suggest that AVAX is gaining bullish momentum, with price action reflecting growing confidence among traders and investors.
https://www.coindesk.com/markets/2025/06/27/avax-breaks-out-of-consolidation-phase
Conclusion: Is AVAX Preparing for a Bigger Breakout?
With technical indicators aligning in favor of the bulls, AVAX appears poised to test and potentially break above the $17.63 resistance level. The breakout from consolidation, combined with rising volume and double bottom confirmation, gives a strong signal of continued upward momentum.
For traders watching crypto price breakouts, AVAX is a token to monitor closely in the coming sessions. If it maintains above its current support, a push towards higher resistance levels could follow.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.