Avalanche (AVAX) Price Rebounds—Can Bulls Trigger a Breakout Above the $7 Liquidity Zone?

Avalanche’s price has been under the spotlight as the bulls have consistently defended the local support, flashing bullish prospects. Currently, it is approaching one of the most critical technical levels, where it has faced repeated rejections as whales have remained pretty active. Besides, derivatives indicate the recent recovery may not have been driven by excessive leverage, but the growing cluster around $7 raises the possibility of a momentum-driven breakout. This leads to the question of whether the AVAX price can break through the barrier and reach $10.

AVAX Price Consolidates Below $7 as Bulls Await Confirmation

AVAX has recovered steadily from its recent lows, but the rally is beginning to lose momentum just below the $6.95–$7.05 resistance zone. This bearish order block has consistently attracted selling pressure over the past few weeks, making it the most important hurdle for bulls to overcome before the recovery can gather pace.

The recent price action also aligns with the derivatives market, where Open Interest has remained relatively subdued despite the rebound. This suggests that while selling pressure has eased, traders are yet to return with enough conviction to support a sustained move higher. For now, AVAX continues to trade within a well-defined range between its demand and supply zones. 

A decisive move above $7, accompanied by an increase in Open Interest, would strengthen the bullish case and shift attention toward the next resistance around $7.50. Until then, the current recovery appears to be in a phase of consolidation rather than a confirmed breakout.

Liquidity Clusters Suggest a Break Above $7 Could Accelerate the Rally

While AVAX continues to trade below the key $7 resistance, the liquidation map suggests the market is approaching a zone where volatility could expand rapidly. A significant concentration of short liquidations is stacked between $6.90 and $7.20, placing the immediate resistance in line with a major liquidity pocket.

This positioning increases the importance of the $7 breakout. A decisive move through the resistance could force short sellers to unwind their positions, adding buying pressure on top of fresh demand. Such moves often accelerate once nearby liquidity is absorbed, opening the door for a breakout toward the $7.50–$8.00 region.

On the downside, liquidation density remains relatively limited below the current price, suggesting the market is less vulnerable to a comparable long squeeze in the immediate term. As a result, traders are likely to remain focused on whether AVAX can reclaim the $7 level, as doing so could shift momentum decisively in favor of the bulls.

Can Bulls Finally Flip $7 Into Support?

Avalanche (AVAX) price continues to trade at a pivotal level, with $7 emerging as the defining resistance for its near-term trend. While the recent recovery has been encouraging, the lack of a meaningful pickup in Open Interest suggests the breakout still requires stronger market participation. At the same time, the concentration of short liquidations above this level could amplify momentum if bulls successfully reclaim it. For traders, the reaction around $7, supported by rising Open Interest and volume, will likely provide the clearest confirmation of AVAX’s next directional move.