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$AVAX has recently broken free from months of bearish control, showing signs of a bullish reversal that could signal a significant shift in its macro price structure.
After spending a considerable amount of time under the pressure of a descending dynamic support/resistance level that has held price action down since February, Avalanche ($AVAX) has now pushed through that level with strength. This move followed a confirmed swing failure pattern at the lows, a common reversal signal, and price action quickly reclaimed both the value area high and the point of control from the previous range. This sharp shift indicates a strong buyer presence and a potential trend reversal.
Key points
- $AVAX flips dynamic SR resistance into support, indicating bullish structure.
- Reclaim of value area high and point of control reinforces momentum.
- Next move depends on confirming a higher low above the flipped SR zone.
The breakout above the dynamic resistance is significant not only because it breaks a multi-month trendline but also due to the context in which it occurred. After a failed breakdown and successful reclaim of key range levels, buyers stepped in with enough conviction to shift momentum.
Price action is now establishing a higher high, and the next critical step is whether $AVAX can hold above the flipped resistance zone and form a higher low.
Volume profile readings support this bullish outlook, with an uptick in participation during the breakout, another encouraging sign that this move isn’t merely a short squeeze, but potentially the start of a sustainable uptrend.
If a higher low is confirmed, traders can expect a rotation toward the key swing high at $28.70, a level that has previously acted as resistance in past market cycles.
On the other hand, failure to hold the current breakout zone would increase the chances of a false breakout and rotation back into the prior range, so price action must be monitored closely in the coming days.
What to expect in the coming price action
If $AVAX forms a clean higher low above the flipped SR resistance, the bullish structure will be confirmed, opening the door for a continuation move toward the $28.70 region. The current market context, with reclaimed range levels and impulsive momentum, supports this bullish thesis, provided key support holds and volume continues to sustain the breakout.