AVAX is testing a critical liquidity zone between $27 and $28 following a breakout above $26, with rising Normalized Risk Metric (NRM) levels signaling increased market volatility and caution for traders.
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AVAX reclaimed the $26 neckline and holds strong support.
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Liquidity clusters near $27–$28 increase short-term volatility risk.
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NRM at 0.82 aligns with previous market tops, indicating caution.
AVAX breaks above $26, testing $27–$28 liquidity zones with rising risk metrics. Stay informed with COINOTAG’s expert analysis and market insights.
AVAX Breakout Above $26 Signals Potential Market Reversal
Avalanche (AVAX) surged above the key $26 resistance on July 29, 2025, after consolidating sideways for months. This breakout confirms a reversal setup, supported by strong buyer interest and volume surges. The price now trades near $28, testing a significant liquidity cluster that could dictate short-term volatility.
What Does the Breakout Structure Indicate About AVAX’s Trend?
The breakout above the neckline at $26 followed two distinct double-bottom formations near $14.50 and $15.50, signaling strong accumulation. Volume peaked at 1.24 million during the breakout, confirming buyer conviction. AVAX now forms higher lows on dips, indicating sustained demand and a potential trend reversal.
How Do Liquidity Clusters and Risk Metrics Affect AVAX’s Price Action?
AVAX approaches a high-liquidity zone between $27 and $28, where significant long positions cluster. This area is prone to shakeouts due to liquidation pressure, as shown by heatmaps highlighting orange bands near $28 and red bars above $26 representing over $1 billion in long liquidation volume. The Normalized Risk Metric (NRM) stands at 0.82, the highest since January 2025, signaling an overheated market environment and increased risk of short-term corrections.
What Are the Key Support and Resistance Levels for AVAX?
Support remains solid around $25, providing a foundation for potential upward momentum. Resistance is expected near $33–$35, where selling pressure may increase. The inverse head-and-shoulders pattern projects a breakout target between $35 and $45, contingent on momentum holding above $25. Traders should monitor liquidity and volume closely for confirmation before any sustained rally.
Frequently Asked Questions
What are the risks associated with AVAX trading near $28 liquidity clusters?
Trading near $28 liquidity clusters carries risk of rapid price swings due to liquidation pressure, as many long positions may unwind quickly, increasing volatility.
Why is the Normalized Risk Metric important for AVAX traders?
The NRM helps traders identify overheated market conditions, signaling when to exercise caution or consider profit-taking to manage risk effectively.
Key Takeaways
- AVAX’s breakout above $26 confirms a reversal setup after months of consolidation.
- Liquidity clusters between $27 and $28 increase short-term volatility risk due to liquidation pressure.
- NRM at 0.82 signals an overheated market, advising caution for traders.
Conclusion
AVAX’s recent breakout above $26 marks a significant technical shift, supported by strong volume and buyer interest. However, rising liquidity clusters and a high Normalized Risk Metric highlight increased short-term volatility risks. Traders should watch key support and resistance levels closely while considering market risk signals. COINOTAG will continue providing expert insights as AVAX navigates this critical phase.
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AVAX tests critical liquidity zones after breaking above $26, signaling a potential market reversal with increased volatility risk.
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High liquidity clusters near $27–$28 and a rising Normalized Risk Metric suggest traders should exercise caution.
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COINOTAG analysis highlights strong buyer interest and key support levels underpinning AVAX’s price action.
AVAX breaks above $26, testing $27–$28 liquidity zones with rising risk metrics. Stay informed with COINOTAG’s expert analysis and market insights.
AVAX Breakout Above $26 Signals Potential Market Reversal
Avalanche (AVAX) surged above the key $26 resistance on July 29, 2025, after consolidating sideways for months. This breakout confirms a reversal setup, supported by strong buyer interest and volume surges. The price now trades near $28, testing a significant liquidity cluster that could dictate short-term volatility.
What Does the Breakout Structure Indicate About AVAX’s Trend?
The breakout above the neckline at $26 followed two distinct double-bottom formations near $14.50 and $15.50, signaling strong accumulation. Volume peaked at 1.24 million during the breakout, confirming buyer conviction. AVAX now forms higher lows on dips, indicating sustained demand and a potential trend reversal.
How Do Liquidity Clusters and Risk Metrics Affect AVAX’s Price Action?
AVAX approaches a high-liquidity zone between $27 and $28, where significant long positions cluster. This area is prone to shakeouts due to liquidation pressure, as shown by heatmaps highlighting orange bands near $28 and red bars above $26 representing over $1 billion in long liquidation volume. The Normalized Risk Metric (NRM) stands at 0.82, the highest since January 2025, signaling an overheated market environment and increased risk of short-term corrections.
What Are the Key Support and Resistance Levels for AVAX?
Support remains solid around $25, providing a foundation for potential upward momentum. Resistance is expected near $33–$35, where selling pressure may increase. The inverse head-and-shoulders pattern projects a breakout target between $35 and $45, contingent on momentum holding above $25. Traders should monitor liquidity and volume closely for confirmation before any sustained rally.
Conclusion
AVAX’s breakout above $26 marks a significant technical shift, supported by strong volume and buyer interest. However, rising liquidity clusters and a high Normalized Risk Metric highlight increased short-term volatility risks. Traders should watch key support and resistance levels closely while considering market risk signals. COINOTAG will continue providing expert insights as AVAX navigates this critical phase.
