Avalanche (AVAX) Rallies 18.23% to $21.22 on Bullish Buy Volume

Avalanche (AVAX) has been on a strong rally, holding above $21 as buy volume flipped positive. The cryptocurrency has been trading within an ascending channel since breaking out of a prolonged consolidation five days ago, leading to an 18.23% rally, topping out at $21.53 before slightly cooling off. As of the latest update, AVAX sat at $21.22, still holding a 2.12% daily gain, while the market cap rose to $8.94 billion.

Despite market volatility, AVAX has shown resilience. After its recent pullback, buyers stepped in aggressively to defend $21, a move reflected in spot market data. Buy Volume hit 481K, while Sell Volume came in slightly lower at 430K, yielding a positive Buy-Sell Delta of 50K—a bullish spot market sign. This was a recovery from the 12th of July, when Sell Volume spiked to 1.53 million and Buy Volume dipped to 1.51 million, briefly handing power to bears.

A similar pattern emerged in the buyers’ and sellers’ power dynamics. Avalanche recorded 118.47K in Buy Orders compared to 99K in Sell Orders, resulting in a positive Order Imbalance. This tilt in real-time trading sentiment added fuel to the rally.

In the futures market, investors were overly bullish. Avalanche’s Funding Rates have stayed positive for five straight days, with the press time reading around 0.00616%. Additionally, the Long/Short Ratio climbed to 3.883, with longs accounting for a hefty 79.18% share. When longs dominate, it implies most investors are actively betting on prices to continue rising—but also hints at a market leaning too far in one direction.

Analysts have weighed in on the situation. According to Ali Martinez, AVAX must defend $20 to preserve bullish structure. A close below could trigger renewed selling, while holding it could open doors to higher targets. If bulls hold the market above this level, the uptrend will continue, as bears will have no incentive to reenter the market.

Momentum indicators for AVAX also show resilience. The altcoin’s Stochastic RSI remained elevated around 99.63, reflecting overbought conditions. Likewise, Avalanche’s +D1 of DMI remained around 30, further confirming the presence of a strong upward momentum. If AVAX holds momentum and flips $22.75 into support, the next stop could be $24.40. However, a break below $20.01 could drag the price down to $17, especially if sellers regain control and spot support vanishes.