AVAX fights at the level of 26 dollars: What factors does the next target depend on?

Avalanche (AVAX) is maintaining a bullish trend, however, the momentum has shown signs of slowing down in the past week. Nevertheless, the demand for this altcoin remains high, while the selling pressure is almost negligible — a positive signal for the bulls. However, everything could change if Bitcoin starts to fall, pulling down the entire market.

AVAX Price Chart | Source: TradingViewOn the 1-day chart, we can observe that the accumulation zone lasting nearly 3 months has been established, marked by the white band. This range lies between 16 and 22.9 dollars. Notably, the average of the zone — around the threshold of 19.5 dollars — has previously acted as a strong bounce point for buying power in May, becoming an important foundation for the current bullish trend.

From the aforementioned support zone, AVAX has witnessed a surge in buying pressure, causing the price to spike 32.5% in just 3 days and reaching the $26 mark. However, the rally quickly stalled as AVAX approached the familiar resistance zone. In the first half of February, the area of $26.5 – $28 had previously acted as a barrier for the bulls, and now, this zone continues to function as a strong supply area, preventing the price from advancing further.

From a technical perspective, the Accumulation/Distribution indicator (A/D) still shows a stable accumulation trend in May, indicating that money is still flowing into AVAX. However, the price is currently trading below the high levels of the range, indicating market hesitation.

In addition, the MACD indicator has recorded a short-term reversal signal. Specifically, a bearish crossover has occurred and the lines are pointing down towards the 0 line – a sign that bullish momentum is weakening and the risk of a short-term correction may be increasing.

Clues from the AVAX liquidation heatmap

Source: CoinglassData from the liquidation heatmap in the last 3 months shows that AVAX still has a risk of further correction. Significant liquidity is accumulating around the $21.5 and $21 levels – coinciding with the local bottoms formed since mid-May. This makes these two price levels viable targets in the short term if selling pressure continues to increase.

Although the market structure on the daily timeframe is still holding a bullish trend, a candle closing below the $22 mark could break that structure and trigger a bearish reversal signal. In a negative scenario, AVAX could correct further, with the $19 area being an important support. This is the area where a large volume of liquidation orders is concentrated — a factor that could pull the price down quickly if triggered.

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