AVAX price has triggered strong interest after confirming a breakout from a major bullish pattern

AVAX price has triggered strong interest after confirming a breakout from a major bullish pattern. Traders and analysts are now focusing on price targets of $32 in the short term

AVAX price has triggered strong interest after confirming a breakout from a major bullish pattern. Traders and analysts are now focusing on price targets of $32 in the short term, with $71 as a mid-term target.

Breakout from Cup and Handle Pattern Confirms Bullish Setup

AVAX price chart recently formed a Cup and Handle pattern. Technical analysis often uses this to identify potential reversal or continuation signals. The pattern included a rounded base followed by a handle-shaped consolidation.

According to market analyst AltCryptoGems, AVAX broke out from this pattern as expected. It is typically interpreted as a bullish continuation signal.

After the breakout, AVAX price climbed above a key horizontal resistance level without facing immediate rejection. The move was backed by increased trading volume, setting a price target of $32.

The chart also shows that the handle portion of the pattern resembled a bullish flag structure. Such formations often indicate trend continuation, which aligns with Avalanche’s current upward trajectory.

Mid-Term Outlook Points Toward $71 Target

SolbergInvest analyzed AVAX price movement within a long-term descending channel. This broader perspective offers insights into potential future trends and reversals.

The token has recently broken out of this downward structure, with price rebounding off macro support levels around $20. This breakout has shifted the trend, and a rally toward $71 has been outlined.

The mid-term projection includes a stair-step move with several periods of consolidation followed by higher highs. This indicates a gradual rally instead of rapid, volatile movements. Based on the current price of around $25.78, reaching the $71 target would represent a gain of over 175%.

AVAX price would need to break above intermediate resistance around $45 to $50 to reach this level. These price levels have previously acted as turning points during earlier trading cycles. The bullish setup remains intact if AVAX holds above the breakout zone from the cup and handle pattern.

On-Chain Activity Supports Positive Momentum

The bullish momentum is also on in Avalanche’s on-chain performance. New information indicates that Avalanche experienced an abrupt growth of active addresses.

AVAX price saw a 979% increase in active addresses in a monitored period, the most by top blockchain networks. This takes the number to over 1.5 million active addresses.

The increase in on-chain activity coincides with increased user adoption, including DeFi, gaming, and NFT utilities. Increased demand on-chain usually means more transactions, network fees, and extra value for the native token.

This helps demand-side pressure to limit those that could bolster favourable price tendencies. Avalanche recorded the highest growth rate among comparable networks.

It outperformed Optimism, Base, and Ethereum during the same period. This momentum could draw more developers and users to its ecosystem. Increased adoption may enhance the long-term utility of the token.

Liquidation Data Shows Potential for Short Squeeze

According to The Kingfisher, AVAX is experiencing an extreme liquidation positioning imbalance. The liquidation pressure is more than 90% on the short and 9.4% on the long sides.

An excess of short positions can lead to forced closures as prices rise. This accelerates bullish momentum, further driving gains.

A heavily shorted asset can trigger a short squeeze when bullish technical signals emerge. Rising prices force short sellers to cover positions, amplifying upward momentum. This type of arrangement may lead to drastic and sudden increases in