- Avalanche faces strong resistance near $26 after a breakout above key trend levels
- Overbought RSI and bullish MACD suggest mixed signals for AVAX’s short-term trend
- $1M in long liquidations hint at trader caution despite AVAX’s weekly price strength
Avalanche (AVAX), one of the top-performing cryptocurrencies in recent weeks, is now at a pivotal price point. After a strong rally that saw the token push through resistance levels at $21 and $26, the market is watching closely as AVAX tests its next major resistance.
However, its short-term trajectory remains uncertain as technical indicators signal both strength and caution. The token is currently priced at $23.56, reflecting a daily decline of 4.24%. Despite this dip, AVAX has posted a solid 12.83% gain over the past week.
Breakout Momentum and Bullish Technicals
According to market analyst Ali Martinez, Avalanche is pressing against a major resistance wall near $26. The asset previously cleared the $21 hurdle, triggering increased buying interest.
Technical patterns show a strong breakout from a long-term descending triangle, which had capped price rallies since early 2024. The breakout above $20 confirmed a shift in momentum, driven by a surge in trading volume.
Avalanche $AVAX is approaching a major resistance at $26. A breakout here could open the door for a significant move! pic.twitter.com/eiNxgYpbbw
— Ali (@ali_charts) July 19, 2025
TedPillows, another analyst, noted that the breakout “has finally happened” and suggests the current consolidation phase could be a setup for another leg higher.
Avalanche has consolidated above $40 briefly in the past, reinforcing the importance of the $26–$30 zone. Despite the recent drop to $23.56, the underlying bullish structure remains intact as long as the price stays above $20–$24.
$AVAX breakout has finally happened.
— Ted (@TedPillows) July 18, 2025
I think $32-$35 Avalanche could happen within 1-2 weeks. pic.twitter.com/SGn5Fg6XBI
RSI and MACD Signal Mixed Short-Term Outlook
Technical indicators offer a mixed picture for short-term price action. The Relative Strength Index (RSI) currently sits at 71.36, placing AVAX in overbought territory. This suggests a potential short-term pullback or sideways consolidation. However, if RSI remains above 70, it could signal continued strength.
On the other hand, the MACD remains in bullish territory, with the MACD line (1.21) above the signal line (0.69). This crossover, along with a growing histogram, signals sustained momentum.
Liquidations Hint at Market Shakeout
In the last 24 hours, AVAX recorded $1.1 million in liquidations all from perpetual contracts. Interestingly, $1.0 million came from long positions, suggesting that some bullish traders may have been caught off guard by the dip. Binance saw the most liquidations, followed by Bybit and OKX.
