Avalanche (AVAX) Surges 7% to $21.39, Eyes $26 Breakout

Avalanche (AVAX) has recently regained a crucial level on its chart, drawing the attention of traders. After weeks of stagnation near the bottom of its range, the AVAX price has surged back above $20, a level that has historically acted as a turning point. At the time of writing, Avalanche is trading at $21.39, and many are watching to see if it can build enough momentum to push higher.

Crypto expert Ali highlighted the significance of this level in a post, stating that Avalanche must hold above $20 to maintain the uptrend and aim for the channel’s upper boundary at $26. This sentiment is shared by many traders who hope that if the AVAX price can stay above this mid-range level, it could be gearing up for a breakout toward the top of its long-term channel.

The 4-hour chart of AVAX reveals a well-defined horizontal channel that has contained price movements since March. This structure includes resistance near $26.00, mid-range support around $20.00–$21.00, and a lower boundary near $16.00. After a sharp drop to the bottom of the range in early July, the AVAX price began to rebound, climbing steadily to the midpoint of the channel. The token is currently trading around $21.39, having reclaimed the $20 level. This middle-level region has historically served both as resistance and support, and current price action has firmly established it as a short-term pivot point. If the AVAX price holds here, analysts view the next reasonable target to be the top of the channel at around $26.00.

The market is now focused on whether the $20 zone holds during this retest. Previous attempts to sustain rallies above this level have failed, leading to reversals toward the $18–$16 range. The recent move follows a strong bounce from the lower channel support around $16.00, where price found demand during multiple sessions in April, June, and early July. That zone has acted as a reliable foundation for buyers, halting deeper corrections. The recent recovery saw a shift in sentiment, with bullish intent confirmed by the breakout above $20. However, the pullback is taking place now as the market retests this breakout level once again. Traders are searching for either a consolidation or a solid rejection, which can decide whether the rally has more room to go ahead.

A clean move above $22.00 would likely signal continuation toward the $26 level for Avalanche price. On the other hand, a fall below $19.50 may reintroduce bearish pressure, increasing the probability of a revisit to lower support areas. The structure on the chart suggests a transition from range-bound weakness to a potential uptrend. Holding above $20 would mark the first higher low since mid-June and reinforce the shift in bias toward the bulls. The horizontal channel remains in effect, but current positioning shows AVAX price at a pivot point. The next 48 hours can make or break if the asset goes higher into the top band or stumbles once again. The action is being observed by traders for clues of broader market sentiment and rotation within the altcoin universe.

While short-term risks remain, reclaiming $20 has placed AVAX in a more favorable technical position. Market participants now await confirmation of momentum before targeting the $26 region. The AVAX price behavior supports a reversal outlook, with the potential for a breakout if the current level holds. The market's focus is on whether the $20 zone can sustain the rally, as previous attempts have led to reversals. The recent bounce from the lower support and the shift in sentiment indicate a potential uptrend, but traders are cautious and await further confirmation before making significant moves.