- Avalanche (AVAX) is gaining bullish momentum, approaching key resistance at $26.07 with a potential breakout targeting $30.
- Rising open interest and positive on-chain data support continued upward movement.
Avalanche (AVAX) is heating up, with its price nearing a critical resistance zone and bullish signals stacking up across both technical and on-chain metrics. As of Wednesday, AVAX is trading just below the $26.07 resistance — a level marked by the 200-day Exponential Moving Average (EMA). A decisive breakout here could propel the altcoin toward the psychologically significant $30 level.
Buyers Dominate as CVD and Open Interest Surge
On-chain data from CryptoQuant paints a bullish picture for AVAX. The Spot Taker Cumulative Volume Delta (CVD), which tracks the balance between buy and sell orders, has been rising steadily since early May. A positive and climbing CVD signals that buyers are in control — a condition often preceding strong price rallies.
Reinforcing this optimism, data from CoinGlass reveals that open interest in AVAX futures has jumped sharply. Rising from $488.25 million on Friday to $622.54 million by Wednesday, this surge in open interest suggests that new capital is flowing into the market, likely fueling further upside.
Also read: Coinbase Stock Jumps 15% After S&P 500 Inclusion, Signaling Major Win for Crypto Industry
Technical Indicators Point to a Breakout
AVAX has successfully bounced off support at its 100-day EMA at $23.21 and is now closing in on its 200-day EMA at $26.07. A daily close above this resistance would confirm a bullish breakout, paving the way for a move to $30.
The Relative Strength Index (RSI) currently reads 69, just shy of the overbought threshold of 70. While this indicates strong momentum, it also signals the potential for short-term profit-taking. However, if RSI pushes beyond 70 and sustains, it would further support the continuation of the bullish trend.
Caution Remains Amid Optimism
While the outlook remains positive, traders should be mindful of potential corrections, especially if AVAX fails to close above the $26.07 level. A pullback could see prices revisit support at the 100-day EMA near $23.21.
Still, with growing market participation and technical strength aligning, Avalanche appears well-positioned to target the $30 mark — a move that would solidify its bullish resurgence.