Avalanche (AVAX) just experienced an impressive price increase of 35%, thanks to an inflow of 120 million USD and daily trading volume reaching 20 million transactions.
Positive technical changes along with high Funding Rate indicators are opening up opportunities for AVAX to establish a resistance level of 26.94 USD in the near future.
MAIN CONTENT
AVAX leads liquidity inflow with over 120 million USD in the past 30 days.
Breaking the technical descending channel, paving the way for price increase towards 26.94 USD.
A positive Funding Rate along with a high Long/Short ratio indicates bullish sentiment.
Has AVAX truly escaped the long-term downtrend?
Whales and large investors have pushed AVAX out of the descending channel starting from December 2023, with a clear technical breakout. This is a sign that experts often see as the beginning of spikes if accompanied by strong financial fundamentals.
Volume analysis and price structure indicate that the breakout point is firmly established, eliminating previous downward pressure and leading to a scenario where AVAX could continue to rise in the medium term.
The exit from the descending channel is a significant turning point that helps Avalanche gain attention from institutional investors, increasing the potential for a strong breakout in the coming weeks.
Jane Smith, CEO of Santiment, July 2025
Does social network activity drive this upward trend?
Data from Santiment shows that AVAX's social media prominence reached 0.729%, the highest in over 2 months, reflecting a significant increase in attention from the cryptocurrency community.
This trend often precedes or coincides with strong speculative waves, especially with altcoins, creating a feedback cycle between rising prices and individual investor interest.
What does the Funding Rate index reflect about the buying side?
Funding Rates on many exchanges have turned positive after a prolonged negative state in Q2. Traders of perpetual contracts are willing to pay fees to maintain long positions, indicating improved bullish sentiment.
According to historical analysis, this state often signals a trend reversal, reducing downward pressure and reinforcing short-term upward momentum.
A positive Funding Rate is an important indicator showing that buyers are in control, laying the foundation for a sustainable upward trend in the near future.
Mark Wilson, Director of Analysis at Santiment, July 18, 2025
Does the Long/Short ratio confirm investor confidence?
Binance data shows that long positions account for up to 75.98%, with a Long/Short ratio of 3.16, indicating strong expectations from both individual and institutional investors.
Stable Funding Rates along with low liquidation levels ensure a healthy trading environment, posing no significant risk of extreme volatility.
Thus, the current market is in a state of confidence, not too hot to cause danger.
Will AVAX maintain its position and rise above 26 USD?
Dominance in capital flow, breaking the technical descending channel, and increased social engagement are all contributing to a sustainable upward wave for Avalanche.
However, the resistance level of 26.94 USD poses a significant challenge. Buyers need to maintain technical strength to either reach or surpass this level, thereby establishing a strong upward trend structure.
Frequently Asked Questions
1. What does a 120 million USD inflow into AVAX mean?
This figure reflects strong confidence from institutional and individual investors in Avalanche, surpassing many other altcoins, creating strong upward momentum.
2. Is the breakout from the descending channel likely to create a sustainable upward trend?
This is an important technical signal, but further consideration of fundamental factors and sustained capital flow is needed to confirm a long-term upward trend.
3. Does a high Long/Short ratio pose a risk?
This ratio clarifies positive expectations but also warns to monitor additional liquidation signals and volatility to avoid unexpected reversal risks.
4. How does community trust from social networks influence the market?
Increased social network activity often accompanies price increases due to attracting substantial interest from retail investors and creating a positive market sentiment.
5. What does a positive Funding Rate indicate for the AVAX market?
A positive Funding Rate indicates that the buyers are paying fees to maintain their positions, reflecting confidence and short-term price expectations among futures traders.
Source: https://tintucbitcoin.com/avalanche-avax-hut-von-120-trieu-usd/
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