AVAX Breaks $26, Tests $27–$28 Liquidity as Risk Spikes
Avalanche’s native token AVAX surged above $26 on July 29 after months of sideways trading, confirming a reversal setup. The 1.24 million volume spike underpins strong buying interest. Currently, AVAX is testing a high-liquidity zone between $27 and $28. Heatmaps show dense long positions here, making the area prone to shakeouts. The Normalized Risk Metric (NRM) stands at 0.82, the highest since January 2025, signaling overheated conditions and potential short-term corrections. Key support sits at $25, while resistance lies at $33–$35. An inverse head-and-shoulders pattern projects a breakout target of $35–$45 if momentum holds. Traders should monitor liquidity clusters and volume for confirmation before entering new positions.
Neutral
Avalanche’s AVAX breaching $26 signals a bullish reversal, backed by strong volume. However, the dense liquidity cluster at $27–$28 and a high NRM of 0.82 elevate the risk of short-term corrections. Historically, similar setups on other altcoins saw rapid pullbacks before sustained uptrends. In the short term, traders may experience volatility around these levels. Over the long term, maintaining momentum above $25 could support a rally towards $35–$45. Given the mix of bullish breakout and cautionary risk signals, the market impact is neutral.