AVAX Price Climbed 6% to $23.42, Building on a 4.56% Weekly Gain

Avalanche climbed 6% to $23.42, building on a 4.56% weekly gain as the Layer-1 token attempts to reclaim key resistance levels. The rally comes amid renewed interest from buyers following a pullback from $27.

Avalanche (CRYPTO: AVAX) had an interesting week. The Layer-1 token attempts to reclaim key resistance levels as it trades up by 6.00% to reach $23.42. This builds on a 4.56% weekly gain.

The cryptocurrency has seen renewed interest from buyers after pulling back from the $27 level.

Despite a 1.78% decrease in market cap to $9.86 billion, the rise in price indicates accumulation following last week's decline. The volume-to-market cap ratio of 3.79% showcases the active circulation of the token.

Out of the 715.74 million maximum supply, 421.15 million tokens are currently in circulation.

Avalanche Price Daily Chart Signals A Bullish Bias, But $22 Support Is Key

The daily charts highlight that Avalanche is still in a bullish structure after the recent selling. The price of Dogecoin is $23.41 now, placing it close to the $24.50 to $27.00 band which has acted as resistance previously.

Over the past few months, this blue zone has caused selloffs due to it being a limit to supply. Only if it manages to claim this resistance area again with good volume can AVAX reach the $30 level.

The Awesome Oscillator is printing a positive signal of 0.80, indicating bullish momentum, even though the histogram is not large.

The Average Directional Index (ADX) is showing a slowly strengthening trend despite it still not being in an aggressive stage yet.

Crucially, $22.00 is becoming a key point for the market. Anything less would put the asset in more risk.

At the lower levels, liquidity becomes very crowded below $21.50 and $21.00, as can be seen on the liquidation heatmap from Coinglass. Should the market tumble further, it could lead to swift losses, as the next key liquidity attraction is at $19.00.

Heatmap Shows Key Liquidation Zones Driving The Avalanche Price Action

A closer look at the Coinglass liquidation heatmap for Binance’s AVA می‌گوید that the pair highlights the trend of where prices may move.

The heatmap shows elevated liquidation leverage at the $21 to $24 price range. As a result, failure to hold the $22.00 support could result in a stronger fall in this area.

Areas highlighted in bright green on the heatmap between $24 and $27 shows greater trading and open interest which may pull prices up should the market continue to rise.

After $27, the heatmap shows gradually decreasing liquidity which signals that a rapid change could occur once the price moves above resistance near $30.

Over the past week, the price pulled back sharply from $22.48 on May 21, reaching $26.14 on May 23, but dropped afterward. The drop plateaued at $22.50, then Avalanche consolidated and made higher lows. The current trend implies more accumulation before $25 is retested.

Although Bitcoin (CRYPTO: BTC) has yet to hit the weekly peak, the price returning to $23.42 is encouraging, thanks to rising daily volume and new confidence in the market. If Bitcoin manages to stay above $24.50, it’s likely to continue moving up, but a drop below $22 would signify that it’s losing momentum.

Considering the present chart structure and liquidity zones, AVAX seems poised for a short-term range between $22 and $25.

If bullish pressure intensifies and the $25–$27 resistance band is breached with volume, a rally toward $30 becomes more probable. This target aligns with historical supply zones and minimal liquidity on the heatmap, implying fewer hurdles on the upward path.

On the downside, failure to maintain a price above $22 could quickly activate the liquidity at $21 and $19. A move toward these levels might be swift as leverage unwinds, leading to potential forced liquidations in greater volumes.

In this article, the views and opinions stated by the author or any people named are for informational purposes only. And they don’t constitute the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.