Avalanche (AVAX) has been on a bullish streak over the past six days, posting impressive gains of nearly 25%. During this period, AVAX’s price surged from $8.65 to $10.8. Note that Bitcoin (BTC) also saw an increase of almost 24% during the same timeframe.
Last week, the $9.2 level for AVAX witnessed an increase in liquidations, as indicated by Hyblock data. The $8.8-$9 range was identified as a potential area for a bullish reversal toward $10, and this analysis has been confirmed by recent price action.
Back on August 29, AVAX experienced a brief bounce, reaching $11.21, before a downtrend began in September. The latter part of August emphasized the significance of the $11–$11.2 range for bearish sentiment.
Over the past two months, this level has been tested on multiple occasions, with bears prevailing each time, despite a quick spike to $11.88 in early October.
The market structure on the four-hour chart currently appears bullish, with the Relative Strength Index (RSI) also indicating positive momentum. The On-Balance Volume (OBV) has shown increased buying volume over the past week.
However, for the next leg upward, a crucial step would be a breakout above the $11.2 resistance zone, followed by a successful retest.
Given the present conditions, traders may want to consider shorting AVAX around the $10.8 range with a stop-loss order just above $11.2.
On October 24, AVAX reached $10.8, followed by a slight drop to $10.18.