The Avalanche (AVAX) ecosystem is capturing growing attention as its native token confirms a major technical breakout. With strong on-chain fundamentals, rising user adoption, and a favorable market structure, AVAX is now positioned for what analysts believe could be a powerful bull run. Early momentum suggests a potential surge toward $32 in the near term, with a mid-term target of $71—representing an upside of over 175% from current levels.
This article explores the technical, on-chain, and market sentiment drivers behind AVAX’s emerging bullish trajectory, offering clarity for investors navigating the evolving crypto landscape.
Technical Breakout Confirms Bullish Momentum
One of the most compelling signals for AVAX’s upward movement is the confirmed breakout from a cup and handle pattern—a well-regarded formation in technical analysis that typically signals strong bullish continuation.
The pattern formed over several weeks, featuring a rounded "cup" base followed by a tighter consolidation phase known as the "handle." This structure often reflects a period of market indecision before renewed buying pressure pushes price higher. In AVAX’s case, the breakout occurred with increased trading volume, reinforcing its validity.
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According to market analyst AltCryptoGems, the breakout was executed as anticipated, clearing a key horizontal resistance zone near $25. Notably, price did not retest or fall back into the pattern—indicating strong conviction among buyers.
Additionally, the handle portion of the pattern closely resembled a bullish flag, another continuation formation commonly seen before sharp upward moves. When combined with rising volume and clean momentum, such patterns increase confidence in sustained bullish follow-through.
With this setup, short-term price targets have been set at $32, representing the measured move objective derived from the depth of the cup. Achieving this level would confirm strong bullish control and potentially open the door for further gains.
Mid-Term Target: Can AVAX Reach $71?
Beyond the immediate $32 target, broader technical analysis suggests even greater upside potential. SolbergInvest’s long-term chart evaluation reveals that AVAX has recently broken out of a descending channel that had contained price action for much of the previous cycle.
Breaking free from this bearish structure—especially after rebounding from macro support near $20—signals a meaningful shift in trend dynamics. Historically, such breakouts from extended downtrends can lead to multi-phase rallies.
The projected path toward $71 appears to be unfolding in a stair-step fashion: a climb, consolidation, then another leg higher. This gradual progression helps absorb selling pressure and builds sustainable momentum, reducing the risk of sharp corrections.
To reach $71 from the current price of approximately **$25.78**, AVAX would need to climb over 175%. While ambitious, this move aligns with historical behavior during prior bull phases across major cryptocurrencies.
Key resistance zones lie between $45 and $50, levels that previously acted as turning points during earlier market cycles. A decisive close above this range would likely attract institutional and algorithmic buying interest, reinforcing upward momentum.
Crucially, maintaining price above the original cup and handle breakout zone will be essential to preserving the integrity of the bullish setup. Any sustained drop back into that area could invalidate the pattern and delay further advances.
On-Chain Activity Signals Strong Network Growth
Technical patterns provide context, but on-chain data offers real-world validation of user demand and ecosystem health. In this regard, Avalanche is showing exceptional strength.
Recent metrics reveal a staggering 979% increase in active addresses over a monitored period—highest among top blockchain networks. This surge brings the total number of daily active addresses to over 1.5 million, reflecting growing engagement across DeFi, gaming, and NFT platforms built on Avalanche.
Such rapid growth in on-chain activity is not just a vanity metric—it directly impacts token economics. More users mean more transactions, higher network fees (paid in AVAX), and increased staking demand. All of these factors contribute to positive price pressure by enhancing utility and reducing circulating supply through fee burns and lockups.
Compared to peers like Ethereum, Optimism, and Base, Avalanche has outperformed in terms of user growth rate during the same window. This competitive edge may attract more developers seeking scalable, low-cost environments for decentralized applications.
👉 See how blockchain networks with strong on-chain activity often lead market cycles.
As developer activity expands, so does the likelihood of new yield opportunities, cross-chain integrations, and institutional-grade infrastructure—each reinforcing AVAX’s long-term value proposition.
Short Squeeze Potential Adds Fuel to the Rally
Market positioning adds another layer to AVAX’s bullish case. According to data from The Kingfisher, there is a significant imbalance in open futures positions—specifically, an overwhelming concentration of short positions.
Liquidation data shows over 90% of leverage bets are on the short side, while only 9.4% are long. Such extreme skewing creates fragile market conditions: as price rises, short sellers face margin calls and are forced to buy back contracts to close positions.
This dynamic can trigger a short squeeze—a rapid, self-reinforcing rally where rising prices force more short covering, which drives prices even higher. In volatile assets like cryptocurrencies, short squeezes can lead to parabolic moves within hours.
Given AVAX’s recent technical breakout and strengthening fundamentals, any catalyst—a major protocol upgrade, exchange listing, or macro-positive event—could ignite this scenario. Traders monitoring liquidation heatmaps are already positioning for such a move.
Core Keywords Driving Market Sentiment
The confluence of technical strength, on-chain growth, and speculative positioning makes AVAX one of the most watched altcoins in 2025. Key terms shaping search interest and investor discussion include:
- AVAX price prediction
- Avalanche bull run
- Cup and handle breakout
- AVAX price target
- Blockchain active addresses
- Short squeeze crypto
- On-chain momentum
- Crypto technical analysis
These keywords reflect both retail and professional inquiry trends, indicating broad-based interest aligned with actual market developments.
Frequently Asked Questions (FAQ)
Q: What is a cup and handle pattern?
A: It’s a bullish continuation chart pattern consisting of a U-shaped "cup" followed by a smaller downward drift called the "handle." A breakout above the handle’s resistance signals resumption of an uptrend.
Q: Why is on-chain activity important for AVAX?
A: Rising active addresses indicate real usage growth on the network. More users transacting means higher fee revenue, greater demand for AVAX, and stronger long-term value accrual.
Q: What price must AVAX hold to remain bullish?
A: To maintain the breakout integrity, AVAX should stay above the cup and handle pattern’s breakout level near $25. A sustained drop below could signal weakness.
Q: What causes a short squeeze in crypto?
A: When many traders bet on price falling (short), a sudden rise forces them to buy back positions quickly. This buying pressure accelerates upward momentum—sometimes dramatically.
Q: Is $71 a realistic target for AVAX?
A: Based on technical structure and precedent during past bull markets, yes—though it will likely take multiple phases of consolidation and breakout to reach that level.
Q: How does Avalanche compare to Ethereum or Solana?
A: Avalanche offers faster transaction finality and lower fees than Ethereum, while maintaining high security. Compared to Solana, it provides better decentralization and network stability during congestion.
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