- Avalanche (AVAX) broke out of a 3-month range but failed to push past the strong $26 resistance zone.
- A dip below $22 could trigger a deeper correction toward $19, unless bulls regain momentum soon.
Avalanche (AVAX) recently surged past a multi-month price range, igniting optimism among traders. However, the $26 resistance — a formidable barrier from February — has once again proven difficult to overcome. Despite bullish demand, Avalanche’s momentum has faltered, raising questions about its next move.
For nearly three months, AVAX consolidated between $16 and $22.9. The altcoin finally broke free of this range in May, with the mid-range support at $19.5 acting as a launchpad. In just three days, AVAX soared by 32.5% to reach $26, but the rally lost steam right at the same level that capped gains in February.
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This historical resistance between $26.5 and $28 is now a significant supply zone. So far, it’s been strong enough to stall the bulls. On the daily chart, Avalanche remains in a bullish market structure, but technical indicators suggest caution. The MACD has formed a bearish crossover and is heading toward the zero line — a sign of waning bullish momentum. Meanwhile, the Accumulation/Distribution (A/D) indicator still trends upward, reflecting persistent buyer interest.
But will that be enough?
Insights from Coinglass’ 3-month liquidation heatmap reveal a potential downside. Clusters of liquidity at $21.5 and $21 coincide with mid-May local lows — likely targets if AVAX dips further. A daily close below $22 could signal a shift in sentiment, possibly leading to a deeper correction toward the $19 zone. This area is packed with liquidation orders, making it a magnet for price action in the event of a broader pullback.
Adding to the uncertainty is Bitcoin’s recent stutter. If BTC sees a correction, AVAX could follow suit.
For now, bulls still have a chance to reclaim control — but the path ahead is narrow. A breakout above $26.5 would reignite bullish momentum. Until then, traders should watch the $22 support and the broader market for clues on AVAX’s next big move.