Avalanche (AVAX) Tests Key Liquidity Near $28 Amid Rising Risk and Reversal Signals

Key Points

1. AVAX reclaimed the $26 neckline and holds strong support, signaling a potential market reversal after months of consolidation.

2. Liquidity clusters near $27–$28 increase short-term volatility risk, with significant long liquidation volume above $26.

3. The Normalized Risk Metric (NRM) stands at 0.82, the highest since January 2025, indicating an overheated market and advising caution for traders.

4. Resistance is expected near $33–$35, with the inverse head-and-shoulders pattern projecting a breakout target between $35 and $45 if momentum holds above $25.

5. The breakout above $26 was confirmed by strong buyer interest and volume surges, peaking at 1.24 million during the breakout.