Avalanche has broken above the descending channel that capped it for weeks, trading near $6.65 with volume and momentum indicators turning in favor of buyers. The weekly chart has not followed: AVAX still trades inside a long-term descending channel, and $10.20 is the level that would confirm a broader reversal.
Avalanche broke above its descending channel on the 4-hour chart, ending weeks of lower highs and lower lows. AVAX hovered near $6.65 after climbing more than 3% this week, recovering from a recent low around $6.10. But the weekly trend remains bearish, setting short-term optimism against long-term resistance.
Volume and momentum back the 4-hour breakout
The move came with a sharp increase in volume, which indicates fresh buying interest rather than a low-conviction push. The Supertrend indicator has flipped bullish, and the MACD has completed a bullish crossover with its histogram expanding into positive territory, suggesting upside momentum is accelerating.
Yet AVAX is now testing the channel’s upper boundary as resistance near $6.70–$6.80. A successful close above that region could trigger an extension toward $7.20, while sustained buying pressure may expose the next resistance around $8.00. Failure to hold above the breakout zone would instead risk a pullback toward $6.30, where the previous channel resistance could act as new support.
The weekly chart still needs confirmation
Higher up the timeframes, the picture is more cautious. AVAX continues to trade inside a long-term descending channel that has defined its trend since late 2025, so the broader market structure remains bearish.
Momentum readings say the same. The RSI remains below 40, showing long-term momentum is still weak despite stabilizing near recent lows, while the Chaikin Money Flow stays in negative territory, suggesting capital inflows have yet to return in a meaningful way. Those indicators imply institutional demand is still limited on the higher timeframe.
$10.20 decides the long-term structure
For the weekly outlook to improve, AVAX must first reclaim the upper boundary of the descending channel before challenging the $10.20 resistance level. A decisive breakout above that area would mark the first meaningful shift in long-term structure and open the door toward $16.80 over the coming months.
Until then, the current rally reads as an early sign of strength rather than confirmation that the broader downtrend has ended.
Source: Coinpedia Fintech News
Trading involves risk.
Risk Disclaimer
