AVAX Price Eyes Breakout As Price Holds Steady Amid Long Liquidation Pressure

Avalanche (AVAX) price is showing early signs of a potential breakout, as the token holds steady above key support levels. Despite recent long liquidation pressure, the price has remained resilient. On-chain activity, whale transactions, and network usage are increasing. Market participants are closely watching for a technical breakout above the $27 level, which may lead to a renewed bullish trend if sustained.Price Stability Amid Long Liquidation TrendsAVAX price traded within the $18 to $20 range over the past several weeks, maintaining a stable price base. Data from liquidation charts between April 1 and May 6 show that long positions were closed frequently during market pullbacks. This suggests that overleveraged bullish traders exited during short-term drops.For example, red bars indicating long liquidations dominated mid-April, particularly on April 9, April 12, and April 22. Despite these periods of selling pressure, AVAX did not fall below the $17.50 support zone. This has been interpreted by market analysts as a sign that stronger hands are absorbing the sell-offs. The price has since stabilized near $19, resisting further downside moves.Source: CoinGlassAnalysts from IntoTheBlock observed that liquidation data points to a balanced market, where short and long positions are being cleared in equal measure. April 6 and April 30 showed large short liquidations of up to $2.7 million. These periods of liquidated bearish positions have coincided with brief upward price movements.Technical Structure Points Toward a Bullish SetupAVAX’s weekly chart shows a falling wedge pattern, which often suggests that a breakout could follow after a prolonged downtrend. The pattern features descending resistance levels and flattening support around $10 to $13, where AVAX previously consolidated.Traders are now looking at the $50 to $55 zone as a key resistance area. If AVAX price breaks above this range, some technical analysts suggest a move to the $75 to $100 area could follow. However, that would require strong volume and continued support from market participants.Source: XAvalanche has also shown a possible rounded bottom formation. This technical shape often suggests that a reversal from bearish to bullish sentiment may occur. If this structure holds, a further price recovery could be expected over time. Analysts at CryptoJack noted that the structure supports a medium-term bullish outlook.Whale Activity and On-Chain AccumulationLarge transaction activity, as tracked by IntoTheBlock, supports the idea of accumulation within the current price zone. Over the past seven days, the number of large transactions each exceeding $100,000 has fluctuated between 198 and 399. A peak of 399 large transactions was recorded on May 2, 2025.These large transactions are often linked to institutional traders or crypto whales. The data suggests that these players are showing increased interest in AVAX, especially when the price moves closer to lower support levels. Notably, activity rose sharply when AVAX traded near $17.50 to $20.Source: IntoTheBlock“Consistent large transactions at support levels point to strategic positioning,” said one analyst at IntoTheBlock. This reflects a pattern where smart money accumulates during periods of price consolidation, which often occurs before a new upward move.Network Usage Reaches Yearly HighsAvalanche’s daily active address count has risen above 250,000, which is the new high since May 2023. Such an increase in the network’s utilization indicates that more people are using blockchain for activities such as DeFi, NFTs, or gaming dApps.Activity on the @avax network is spiking!Daily active addresses have now exceeded 250k—the highest on-chain activity levels since May 2023. pic.twitter.com/lZYtCK2RDa— Sentora (previously IntoTheBlock) (@SentoraHQ) February 5, 2025The increase in on-chain activity can be attributed to the growth of the Avalanche ecosystem. Decentralized real-world asset-backed protocols and financial instruments are being built on the network. Subnets, which provide flexibility for application-specific blockchains, are garnering interest from the enterprise and game sectors.This could lead to more adoption or usage of the native token AVAX, propelling the value higher. If the daily active addresses stand at 300,000, it will be at levels last seen early 2023. According to IntoTheBlock data, activity of users has been rising on the Avalanche network and can become a sign of further price increase.The post AVAX Price Eyes Breakout As Price Holds Steady Amid Long Liquidation Pressure appeared first on The Coin Republic.