Avalanche rallies 4 days – 3 factors that could help AVAX clear $9

Avalanche [$AVAX] extended its bullish push after recording four consecutive days of gains. The rally brought the token closer to reclaiming the $10 psychological level.

More significantly, $AVAX broke above a multi-week pennant pattern as momentum and on-chain activity strengthened.

However, the $9 resistance remains the key hurdle separating the breakout from its $10 target.

Can $AVAX hold its pennant breakout?

$AVAX broke above its pennant resistance near $7.15 after several weeks of consolidation. The breakout followed four consecutive daily gains, reflecting stronger short-term buyer control.

$AVAX also traded above its key Exponential Moving Averages, adding support to the bullish structure.

If $AVAX holds the former pennant resistance as support, it could challenge $9 before targeting $10. That technical breakout gained additional support from rising activity across Avalanche’s network.

Is Avalanche network activity rising?

Avalanche’s Network DEX Volume reached $141.61 million over 24 hours, marking a new monthly high.

The increase reflected stronger decentralized exchange activity across the network.

However, higher DEX Volume did not independently confirm greater demand for $AVAX. Meanwhile, Average Order Size data showed large orders clustered near $AVAX’s current price. This suggested that whales 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.

Are $AVAX longs becoming crowded?

$AVAX’s Long/Short Ratio showed that Long Accounts represented approximately 70% of tracked trader positioning.

The reading reflected a significant bullish bias among derivatives traders.

However, the concentration also increased $AVAX’s exposure to a Long Squeeze. A sharp rejection near $9 could trigger Long Liquidations and accelerate a short-term pullback.

Therefore, bullish positioning supports the rally while simultaneously creating its clearest leverage risk.

Can $AVAX reclaim $10?

$AVAX’s pennant breakout, monthly-high DEX Volume, and whale activity strengthened its recovery outlook. However, the token must first clear the $9 resistance.

A confirmed breakout above $9 with stronger Trading Volume could open a move toward $10. By contrast, rejection could return $AVAX toward its former pennant resistance.

$AVAX escaped weeks of consolidation. Its next argument with the market begins at $9.