Avalanche (AVAX) Price Builds Pressure Below Resistance—Is it a Liquidity Sweep or Breakout Next?

Avalanche (AVAX) price is showing early signs of recovery after weeks of sustained downside pressure, with the price now stabilizing near a critical demand zone around $6. The recent bounce has helped AVAX form a compression structure just below a key resistance zone, hinting that volatility expansion could be approaching. While buyers are gradually stepping in and absorbing supply, the market remains at a decisive point, where a breakout could open the door for a move toward higher liquidity zones near $9. 

However, failure to reclaim resistance may keep AVAX trapped in consolidation or trigger another sweep of lower support levels.

AVAX builds bullish compression as spot demand and futures positioning improve

Avalanche (AVAX) is showing signs of re-accumulation after finding strong support near the $6 demand zone, where buyers absorbed the recent sell-off. Since then, the price has been forming a tightening ascending structure, with higher lows pressing into the $7.15 resistance zone—a setup that often precedes a volatility expansion.

Besides, the spot CVD has started recovering steadily, signaling that real market buyers are stepping in and absorbing supply at lower levels. On the other hand, future CVD is also turning positive. This is a positive sign because spot-driven buying usually carries stronger conviction compared to leveraged moves.

Besides, the spot CVD has started to recover steadily, and future CVD is also turning positive. This signals a rise in spot-driven demand, while the aggressive market participants are beginning to position themselves for upside as bullish sentiment in the perpetual market. 

More importantly, Open Interest (OI) is climbing alongside price, which confirms that fresh positions are entering the market rather than the move being driven by short covering alone. Rising OI with rising price typically suggests genuine trend participation and strengthens the breakout case.

However, AVAX still faces its key test at $7.15. A clean breakout above this level, backed by expanding OI and stronger CVD flows, could trigger a move toward the $8.80–$9.00 supply zone. If buyers fail to reclaim resistance, the market could rotate back into the $6.25–$6.50 support range before attempting another expansion.

Can AVAX Price Reach $10?

Avalanche price is starting to show early signs of strength, but the path to $10 is still dependent on one key factor: breaking above the $7.15 resistance zone. The current setup looks constructive, with spot buying improving, futures traders stepping in, and open interest gradually building. This suggests the market is preparing for a bigger move rather than simply reacting to short-term volatility. If bulls manage to flip resistance into support, the next major target sits around $9, and from there, $10 becomes a realistic upside objective.