Avalanche Extends Four-Day Rally as AVAX Eyes the $9 Hurdle

Avalanche ($AVAX) — the native token of a layer-1 blockchain that competes with Ethereum, Solana and other smart-contract networks for developers and decentralized finance (DeFi) activity — has extended its advance after posting four consecutive days of gains, a move that has brought the token closer to reclaiming the psychologically important $10 level. The token also broke above a multi-week pennant pattern as momentum and on-chain activity strengthened. Still, resistance at $9 stands as the key hurdle between the breakout and its $10 target.

Pennant breakout holds so far

$AVAX cleared its pennant resistance near $7.15 after several weeks of consolidation, with the breakout following four straight daily gains — a sign of stronger short-term buyer control. The token is also trading above its key Exponential Moving Averages, which lends further support to the bullish structure. If the former pennant resistance holds as support, $AVAX could challenge $9 before aiming at $10.

Network activity at a monthly high

The technical breakout has coincided with rising activity on the Avalanche network. Network DEX Volume reached $141.61 million over 24 hours, marking a new monthly high and reflecting stronger decentralized exchange activity across the network. For layer-1 blockchains like Avalanche, DEX volume is one of the most widely watched proxies for real on-chain usage, since it captures trading across the decentralized applications built on the chain. However, higher DEX Volume did not independently confirm greater demand for $AVAX.

Meanwhile, Average Order Size data showed large orders clustered near the token's current price, suggesting that whales — large-volume traders whose orders stand out in order-size data — were active as $AVAX approached resistance. Even so, Average Order Size could not establish whether those traders were accumulating or distributing — their direction may become clearer as $AVAX tests $9.

Crowded longs pose leverage risk

$AVAX's Long/Short Ratio showed that Long Accounts represented approximately 70% of tracked trader positioning, reflecting a significant bullish bias among derivatives traders. That concentration, however, also increases the token's exposure to a Long Squeeze. A sharp rejection near $9 could trigger Long Liquidations and accelerate a short-term pullback. In other words, bullish positioning supports the rally while simultaneously creating its clearest leverage risk.

Can $AVAX reclaim $10?

The pennant breakout, monthly-high DEX Volume, and whale activity have strengthened $AVAX's recovery outlook, but the token must first clear the $9 resistance. A confirmed breakout above $9 accompanied by stronger Trading Volume could open a move toward $10. By contrast, a rejection could return $AVAX toward its former pennant resistance. Even a reclaim of $10 would leave the token far below the record highs it set in late 2021.

Having escaped weeks of consolidation, $AVAX now faces its next test with the market at $9.

Source: CryptoNews.net | AMBCrypto