Avalanche (AVAX) is testing a crucial liquidity range between $27 and $28 following its decisive breakout above the $26 resistance level. This price action unfolds alongside escalating market risk indicators, driving increased volatility and prompting trader caution.
AVAX has firmly reclaimed the $26 technical neckline after months of consolidation, establishing a strong support base that hints at a potential market reversal. However, clustered liquidity near the $27-$28 zone is elevating short-term volatility risks, with significant long liquidation volumes observed above the $26 threshold.
The Normalized Risk Metric (NRM) for AVAX currently reads 0.82 – its highest level since January – signaling an overheated market environment. This elevated risk measurement underscores the need for heightened trader vigilance amid current price fluctuations.
Technical patterns suggest resistance may emerge near the $33-$35 price band, though an inverse head-and-shoulders formation projects a breakout target of $35 to $45 if AVAX maintains momentum above the $25 support level. The initial breakout past $26 was validated by robust buyer participation, with transaction volumes peaking at 1.24 million AVAX during the surge.