Avalanche’s AVAX token posted a standout move over the past 24 hours, rising 8.05% to $6.74, according to data from CoinMarketCap. The gain outpaced Bitcoin’s 1.02% increase over the same period.

Traders attributed the move primarily to a technical breakout, while discussion of a short squeeze and renewed capital rotation into altcoins also contributed to attention around the token. AVAX is the native token of Avalanche, a layer-1 blockchain network, so moves in the token are often tracked alongside broader demand for alternative smart-contract platforms.

Technical Breakout Lifts AVAX

CoinMarketCap data showed AVAX breaking above a descending channel on the four-hour chart, a structure that had limited price action for several weeks. Trading volume rose 59% over 24 hours to $377 million, indicating stronger activity behind the move.

The 14-day relative strength index climbed to 69, a level often associated with strong upward momentum. Readings near 70 are also watched closely because they can signal that a short-term move is becoming extended. The moving average convergence divergence indicator, or MACD, also turned bullish, supporting the view that the short-term trend had shifted.

Together, those signals indicated that spot buyers pushed AVAX through an important resistance area, rather than the move occurring on thin volume.

Market participants are watching whether AVAX can secure a daily close above the $6.76 to $6.84 range, which includes the recent high. A close above that area would be viewed by traders as confirmation that the breakout can hold, rather than a return to the prior trading range.

Short-Squeeze Discussion and Altcoin Rotation

Discussion on social media also focused on the possibility that a short squeeze helped drive the rally. Trader DHouseofcrypto on X cited a figure of 93% short liquidations tied to the move. The discussion came as AVAX moved sharply while the broader market was comparatively flat.

Short-squeeze chatter matters because forced closures of leveraged bearish positions can add buying pressure during a fast move. That dynamic can accelerate a breakout, but traders typically look for follow-through volume and support retests to separate a squeeze-driven spike from a more durable shift in demand.

The CMC Altcoin Season Index also rose 7.27% to 59. That reading suggested capital was beginning to rotate from Bitcoin into altcoins, including AVAX.

Market analyst Alex Marzell highlighted the move, noting that AVAX advanced from $6.14 to a new 15-day high of $6.84. Marzell identified the former range high near $6.73 as the level to monitor next.

$AVAX woke up. While the rest of the majors chopped, it ran from 6.14 to a fresh 15 day high at 6.84, up 8.7% and the strongest major on the day. The old range highs at 6.73 are the level now. Hold above and continuation stays on the table, lose it and this was just a squeeze.… pic.twitter.com/wbWK3C3naw — Alex Marzell (@MarzellCrypto) July 26, 2026

https://x.com/MarzellCrypto/status/2081278173958795411?ref_src=twsrc%5Etfw

Key Levels Traders Are Watching

The near-term path for AVAX is now centered on the $6.30 to $6.55 zone, which previously acted as resistance and is now being watched as support.

If AVAX holds that band, traders see room for a retest of $7.20, described as the next technical target. A break below $6.10 would invalidate the breakout setup and point to a possible retest of lower support levels.

Trader CryptoGuru12 outlined a trade setup, citing an entry range of $6.52 to $6.58 and a stop loss at $6.15. The trader listed take-profit levels at $6.75, $7.00, and $7.35 as the breakout develops.

🚀 $AVAX Bulls Are Back — Breakout Signal Activated $AVAX has printed a strong bullish recovery candle after defending key support. Momentum is building, and buyers are attempting to reclaim the recent resistance zone. A successful breakout could trigger another leg higher.… pic.twitter.com/SmblyUX0x3 — CryptoGuru12 (@Cryptoguruu_12) July 25, 2026

https://x.com/Cryptoguruu_12/status/2081043375013413055?ref_src=twsrc%5Etfw

Separately, CoinGecko data placed AVAX at $6.70, with 24-hour trading volume near $293 million. CoinGecko showed a 6.99% gain over 24 hours and a 3.30% gain over the past week.

Despite the rebound, AVAX’s weekly chart remained within a longer-term downtrend. Analysts said a sustained reversal would require a break above $10.20, a level that remained well above the current price.