AVAX prices are approaching the peak of a multi-month ascending triangle consolidation phase, and as of the time of writing, momentum favors the bulls.


Avalanche [AVAX] has been consolidating within an ascending triangle for months, with prices increasingly tightly integrated into this pattern.

This week's rebound from the triangle support level has triggered significant volatility - the token has risen more than 12% in the past day.

The overall structural setup seems to be in a breakout attempt, especially when combined with the increasingly bullish momentum on the daily chart.

Momentum is beginning to strengthen

As of the time of writing, the technicals are leaning bullish. The stochastic RSI has just recovered from oversold levels, indicating that buyers are returning to the market.

However, this does not guarantee subsequent actions, but combined with the recent rebound, it provides more support for entering the final phase of consolidation.

Sellers still have the upper hand

On-chain data tells a slightly different story. Spot accumulated trading volume increments and futures activity indicate that sellers are still active.

In simple terms, while prices are rising, much of the increase is occurring under stable sell orders. This tug-of-war explains why AVAX has yet to break out completely.

Liquidity may be a determining factor

A factor that could play a decisive role is liquidity. CryptoQuant's current liquidation map data highlights several liquidation clusters above the market.

Liquidity clusters are often known for attracting price movement. If prices fluctuate towards this area, it could trigger a rapid rise due to short-sellers being forced to exit.

This move could further strengthen market confidence, prompting investors to enter the market, thereby increasing the likelihood of a potential breakout.

Currently, AVAX is at a crossroads. Although the market still shows significant hesitation, the technical structure on the daily chart favors the bulls.

If momentum aligns with liquidity, a breakout may ultimately be achieved. However, if momentum fails to materialize, consolidation may persist in the short term, but the market sentiment is primarily tilted towards bulls.

#AVAX✈️ #牛市到来