AVAX Could Be Poised for Breakout as Ascending Triangle Squeeze and Momentum Build, Liquidity Risks Remain

  • AVAX price is testing the apex of an ascending triangle — a breakout could follow if momentum and liquidity align.

  • Daily technicals show rising bullish momentum, while on-chain spot and futures flows reveal ongoing seller dominance.

  • Liquidity maps (CoinGlass, CryptoQuant) highlight clusters above market that could trigger a rapid move if reached.

AVAX breakout: Avalanche (AVAX) nears triangle apex; watch momentum and liquidity clusters for a decisive move — read actionable levels and next steps.






What is driving the AVAX breakout potential?

AVAX breakout potential is driven by price compressing inside a months-long ascending triangle, a daily stochastic RSI turning up, and a sharp recent bounce that pushed AVAX higher by over 12% in 24 hours. These factors increase the likelihood of a decisive move if sellers fade and liquidity is triggered.

AVAXUSD 2025 08 23 13 14 07

AVAXUSD 2025 08 23 13 14 07

Source: TradingView

How does momentum influence the AVAX breakout?

Momentum is a key short-term trigger. The stochastic RSI has turned up from oversold on the daily timeframe, indicating buyers are re-entering. Short-term momentum increases the odds of a breakout, but it does not guarantee sustained follow-through unless confirmed by volume and on-chain flows.

How do on-chain signals affect the outlook?

On-chain metrics show active selling. Spot cumulative volume delta and futures data suggest sellers remain engaged despite the price rally. That dynamic explains why AVAX has not yet broken out cleanly—the market is in a tug-of-war between buyers pushing price and sellers defending resistance.

AVAX seller dominance

AVAX seller dominance

Source: CryptoQuant

Why could liquidity be the decider for AVAX?

Liquidity clusters above the market act as magnet zones. CoinGlass liquidation maps show multiple clusters sitting above current prices. If price drifts into these zones, forced liquidations could accelerate upside movement and convince hesitant investors to buy, increasing breakout probability.

Binance AVAX USDT Liquidation Heatmap3 month 2025 08 23 15 35 48

Binance AVAX USDT Liquidation Heatmap3 month 2025 08 23 15 35 48

Source: CoinGlass

Frequently Asked Questions

What price level should traders watch for a confirmed AVAX breakout?

Traders should watch a clean daily close above the upper trendline of the ascending triangle with increased volume; specific resistance levels change with price action, so use the current triangle high as the reference.

How long could consolidation continue if sellers remain active?

If sellers sustain pressure, the consolidation could extend for several more sessions or weeks until liquidity shifts or a catalyst changes market sentiment; watch on-chain flows for early signs of shift.

Key Takeaways

  • Pattern setup: AVAX sits in a months-long ascending triangle, compressing toward the apex.
  • Momentum vs sellers: Daily momentum is improving, but spot and futures metrics show active selling.
  • Liquidity focus: Liquidation clusters above current price could accelerate a breakout if swept.

Conclusion

AVAX breakout prospects look favorable as technicals tighten, but the path higher depends on reduced seller dominance and the activation of liquidity clusters. Traders should monitor momentum indicators, on-chain flows (CryptoQuant), and liquidation heatmaps (CoinGlass) and manage risk with defined stops while awaiting confirmed follow-through.

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