Avalanche Clings to $26: Where AVAX Goes Next Hinges On These Factors

Avalanche’s AVAX is locked in a tug-of-war at the $26 level—a make-or-break zone that could dictate its next big move. Bulls and bots are duking it out, but here’s what really matters.

The $26 Battlefield

Hold or fold? AVAX’s price action screams indecision. Traders are eyeing this psychological threshold like hawks—break above, and the path to $30 opens up; fail, and it’s back to the $22 trenches.

Volume Tells the Tale

No fancy indicators needed—just follow the money. Spot buying needs to overpower derivative gamblers’ leverage flips for any sustained rally. Watch for whale wallets moving off exchanges (or not).

Ecosystem Pulse Check

Developer activity and dApp TVL aren’t just buzzwords—they’re AVAX’s oxygen supply. The chain needs more than memecoins and empty ’partnership’ press releases to justify its cap.

Meanwhile, Bitcoin’s playing kingmaker—again. If BTC stumbles, even Avalanche’s slickest tech won’t save AVAX from getting dragged down. Such is life in altcoinville—where ’decentralization’ means following one asset’s lead.

Source: AVAX/USDT on TradingView

On the 1-day chart, a range formation almost 3 months old was seen. Marked in white, the range reached from $16 to $22.9. In May, the mid-range level at $19.5 served as a launchpad for the bulls.

From this support level, a strong influx of demand sent Avalanche prices rocketing higher to $26, a 32.5% gain in three days. Yet, the bulls were stalled in this region. In the first half of February, the $26.5-$28 region had served as resistance.

At press time, the same area acted as a supply zone, making it difficult for prices to advance higher. The A/D indicator has continued to trend higher in May, but AVAX has fallen just under the range highs.

The MACD captured the shift in momentum in the market. It formed a bearish crossover and was headed toward the zero line, indicating weakened bullishness.

Clues from the Avalanche liquidation heatmap

Source: Coinglass

The 3-month liquidation heatmap showed that the Avalanche price dip might go deeper. A buildup of liquidity was seen at $21.5 and $21. These levels also marked the local lows from mid-May, making them a feasible short-term price target.

The market structure on the 1-day chart remains bullish, but a session close below $22 could trigger a bearish shift.

If that happens, Avalanche may face a deeper correction, with $19 acting as a key level due to its high concentration of liquidation orders, potentially pulling the price lower.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion