AVAX jumps 8% as short squeeze and altcoin inflows drive breakout
🚀 AVAX soared 8% to $6. 74 as a breakout fueled rapid gains in $AVAX. 📈 High trading volumes and a reported short squeeze drove the token above key resistance levels. 💬 Traders now watch for a close above $6. 76 to confirm ongoing momentum. ⏳ Avalanche remains below its major weekly resistance despite the bounce.
Avalanche’s AVAX token surged 8. 05% in the past 24 hours, reaching $6. 74 and outperforming leading digital assets, according to CoinMarketCap data. This price move comes as the cryptocurrency market remains mostly subdued, withBitcoinrising just 1. 02% over the same period. Traders pointed to a technical breakout, together with a sharp uptick in trading activity, as central to AVAX’s breakout performance. Technical breakout pushes AVAX higherAVAX managed to break above a descending channel on the 4-hour chart, ending a multi-week period of price consolidation. Trading volume climbed 59% to $377 million over 24 hours, indicating increased buying interest. Avalanche is a layer-1 blockchain platform designed to host decentralized applications and custom blockchain networks. Its native cryptocurrency, AVAX, serves as both a utility and governance token for the network. The 14-day Relative Strength Index rose sharply to 69, reflecting intensifying bullish momentum. The Moving Average Convergence Divergence indicator, or MACD, also flipped positive, providing further confirmation of short-term trend reversal. These combined signals suggest that buyers pushed AVAX past key resistance with notable volume, rather than on thin trading activity. Eyes are now on a potential daily close above $6. 76 to $6. 84, the recent highs, which could confirm the strength of the move and potentially extend the rally. Asset24h ChangeCurrent Price24h VolumeAVAX+8. 05%$6. 74$377 millionBitcoin+1. 02%––Short squeeze and altcoin rotation factor inSpeculation around a short squeeze grew as AVAX’s price sharply diverged from the broader market. Social media users cited a 93% rate of short liquidations, fueling discussion about traders who bet against AVAX getting caught on the wrong side of the move. The CMC Altcoin Season Index climbed 7. 27% to 59, suggesting fresh capital is shifting from Bitcoin into altcoins such as AVAX. Market analyst Alex Marzell noted that AVAX ran from $6. 14 to a new 15-day high of $6. 84, marking it as the strongest major digital asset of the day. Marzell identified the former range high near $6. 73 as a critical level to watch, with the potential for further gains if this level is maintained. AVAX led the major cryptocurrencies, advancing from $6. 14 to $6. 84, a 15-day high. The old range high near $6. 73 is now essential; holding above it could mean continued strength, but a drop below may point to the move being primarily a short squeeze. Key levels and outlookShort-term price direction for AVAX now depends on whether it can hold above the $6. 30 to $6. 55 support zone, which previously acted as resistance. Sustaining this level could open a move toward $7. 20, while a drop below $6. 10 would invalidate the breakout and increase the odds of revisiting lower support. Analyst CryptoGuru12 outlined a trading strategy with an entry region of $6. 52 to $6. 58, a stop loss at $6. 15, and take-profit levels at $6. 75, $7. 00, and $7. 35, as long as momentum persists. AVAX is showing a strong rebound, with buyers attempting to push through recent resistance. If this breakout holds, another leg higher could follow, according to some traders. CoinGecko’s latest figures place AVAX at $6. 70 with 24-hour trading volume near $293 million, marking a 6. 99% daily and a 3. 30% weekly gain. Despite the rebound, the weekly chart remains in a longer-term downtrend, and analysts say a reversal would require a close above $10. 20, which remains a distant target. Disclaimer:The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.