AVAX jumps 8% past resistance as short squeeze and altcoin rotation build momentum. Here’s what’s driving the breakout.
Avalanche is having a rare standout day. AVAX climbed 8.05% to $6.74 in the last 24 hours, according to data from CoinMarketCap.
That move dwarfs Bitcoin’s modest 1.02% gain over the same stretch.
Traders are pointing to a technical breakout as the main driver. A short squeeze and fresh capital flowing into altcoins may be adding fuel.
Read also – Avalanche’s 1,326% Upside Case: Is Selling AVAX Now a Huge Mistake?
Technical Breakout Drives AVAX Price Surge
As per CoinMarketCap, AVAX broke above a descending channel on the 4-hour chart, a pattern that had capped price for weeks. Trading volume spiked 59% to $377 million in 24 hours, signaling real buying interest behind the move.
The 14-day RSI jumped to 69, a level that typically points to strong bullish momentum. The MACD also flipped bullish, confirming the shift in short-term trend.
Together, these signals suggest spot buyers pushed through a key resistance zone rather than a thin, low-volume pop.
Traders are now watching for a daily close above $6.76 to $6.84, the recent high. A close there would confirm the breakout has staying power instead of fading back into the old range.
Short Squeeze Chatter and Altcoin Rotation
Social media lit up with talk of a short squeeze feeding the rally. One trader, DHouseofcrypto on X, cited a figure of 93% short liquidations tied to the move. It lines up with how sharply AVAX decoupled from an otherwise flat broader market.
Adding to the picture, the CMC Altcoin Season Index rose 7.27% to 59. That reading suggests money is starting to rotate out of Bitcoin and into altcoins like AVAX.
Market analyst Alex Marzell flagged the move, noting AVAX ran from $6.14 to a fresh 15-day high of $6.84. Marzell pointed to the old range high near $6.73 as the level to watch going forward.
$AVAX woke up. While the rest of the majors chopped, it ran from 6.14 to a fresh 15 day high at 6.84, up 8.7% and the strongest major on the day. The old range highs at 6.73 are the level now. Hold above and continuation stays on the table, lose it and this was just a squeeze.… pic.twitter.com/wbWK3C3naw
— Alex Marzell (@MarzellCrypto) July 26, 2026
What Comes Next for AVAX Price
The near-term path for AVAX now hinges on the $6.30 to $6.55 support zone, which previously acted as resistance.
Holding that band could open the door to a retest of $7.20, the next technical target. A break below $6.10 would invalidate the breakout and point to a retest of lower support levels.
Trader CryptoGuru12 laid out a setup, citing an entry range of $6.52 to $6.58 with a stop loss at $6.15. That trader listed take-profit targets at $6.75, $7.00, and $7.35 as the breakout plays out.
🚀 $AVAX Bulls Are Back — Breakout Signal Activated$AVAX has printed a strong bullish recovery candle after defending key support. Momentum is building, and buyers are attempting to reclaim the recent resistance zone. A successful breakout could trigger another leg higher.… pic.twitter.com/SmblyUX0x3
— CryptoGuru12 (@Cryptoguruu_12) July 25, 2026
Separately, CoinGecko data puts AVAX at $6.70 with 24-hour volume near $293 million. That source shows a 6.99% daily gain and a 3.30% gain over the past week.
Despite the sharp bounce, the weekly chart for AVAX still sits in a longer-term downtrend. Analysts say a sustained reversal would require a break above $10.20, a level still well out of reach for now.
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