AVAX Breakout Clears $26 as Bulls Eye $28 Amid Rising Risk Conditions

AVAX reclaims neckline at $26 and holds support

Liquidity clusters build near $27–$28, increasing volatility risk

NRM reaches 0.82, aligning with historical market tops

Avalanche (AVAX) broke above the $26 resistance on July 29, 2025, following months of sideways movement. The price now trades near $28, where high liquidity levels and increased market risk signal a possible turning point.

Breakout Structure Confirms Reversal Setup

AVAX trades at $25.43 after climbing from June lows around $15. The breakout above the neckline at $26 followed months of sideways movement. Buyers stepped in after two clear double-bottom formations formed at $14.50 and $15.50.

Volume surged to 1.24 million during the breakout. Price reclaimed key resistance and turned it into support around the $25.50–$26.50 zone.

Price now forms higher lows with each dip, showing stronger hands in the market. The structure reflects a reversal phase supported by consistent buyer interest.

Liquidity Clusters and Risk Signals Emerge

AVAX approaches a high-liquidity zone between $27 and $28. As shared by @Fundingvest using charts from @alphacrypto, this area holds heavy liquidation pressure. These clusters often trigger shakeouts or short-term

Source: alphacrypto via x

The heatmap shows orange bands near $28. These bands represent high levels of long positions that may unwind quickly. Red bars above $26 indicate over $1 billion in long liquidation volume stacked in that range.

The Normalized Risk Metric (NRM) also flashes a warning. It sits at 0.8202, the highest since January 2025, when AVAX traded above $50. This metric tracks when markets enter overheated territory.

Buy-side pressure still dominates dips, but short-term risks grow with each move higher. Traders begin to take profit as AVAX tests levels known for quick volatility.

The bigger picture remains constructive. An inverse head-and-shoulders pattern has formed with a breakout projection targeting $35 to $45. The chart symmetry supports this move, as long as momentum holds above $25.

Support at $25 is solid for now. Resistance around $33–$35 may act as the next ceiling. Traders closely watch liquidity and volume for confirmation before any continuation rally.

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