AVAX crypto’s story is heating up again, and this time, it’s not just retail excitement driving the move. A massive institutional move and a series of bullish technical signals have reignited optimism across the market.
Institutional Demand Boosts Avalanche’s Market Outlook
A $675M SPAC deal has been committed to purchasing $1B worth of AVAX tokens, marking what could become one of the largest institutional treasury allocations of 2025. As reported by Andres Meneses, this move represents a defining moment for Avalanche’s credibility among institutional investors.
Such large-scale accumulation tends to have a profound impact on liquidity and sentiment. It reinforces the notion that AVAX remains a key player in the Layer-1 race, and the injection of fresh capital could significantly stabilize prices and fuel higher valuations as the year progresses.
AVAX TD Sequential Flashes a Bullish Signal
Ali Martinez’s latest analysis shows that the TD Sequential indicator, which accurately signaled the last market top, is now flashing a buy setup on the Avalanche chart. This reversal cue aligns with multiple compression candles near $19–$20, suggesting that downside momentum may be exhausted.
Avalanche’s TD Sequential indicator flashes a fresh buy setup near $19–$20, signaling potential bullish reversal momentum. Source: Ali Martinez via X
A breakout above $20.8 to $21.5 would likely confirm bullish continuation, with short-term resistance visible near $23.0. Holding current lows and printing higher closes on the next few sessions could validate this reversal, positioning Avalanche for a potential mid-term rally phase.
Liquidity Flow Suggests Accumulation
Recent data shared by RebornAli3N reveals that Avalanche successfully absorbed liquidity at $19.5, an area where demand has historically returned. The next major liquidity wall stands around $22.5, indicating that the market might be preparing for a rotation into higher zones.
Liquidity data shows strong absorption near $19.5, hinting at growing accumulation and potential breakout toward higher price zones. Source: RebornAli3N via X
If this liquidity cluster holds firm, the shift in balance from sell-side pressure to accumulation could set up a clean breakout structure. Reclaiming the $22.5 to $23 area would put AVAX crypto back on track for a broader move, potentially targeting $27 to $30 in the near term.
AVAX Price Double Bottom Formation Near Key Support
AVAX crypto is currently carving out a double-bottom pattern near the $19 horizontal support, an area that previously acted as a strong reaction zone. This formation reflects strong buyer defense despite recent sell pressure.
AVAX crypto forms a double-bottom pattern near the $19 support zone, signaling strong buyer defense and early signs of structural recovery. Source: Meta Shark via X
A breakout above the descending trendline, which currently caps price around $21.8, would confirm structure strength. Until that happens, traders are watching how well price sustains above $19, as any close beneath this line could briefly invite another test near $17.8 before recovery.
AVAX Price Prediction: Descending Channel Targets Point Towards $86
The broader view from Don’s chart displays AVAX price is trading within a long-term descending channel, with its upper boundary aligning near the $85 to $90 zone. The current setup implies that if this channel breaks to the upside, AVAX could experience one of its strongest cyclical expansions since 2021.
AVAX trades within a long-term descending channel, with breakout targets pointing toward $86 if momentum strengthens into Q4. Source: Don via X
The structure remains intact as long as AVAX crypto holds above $18 to $19 levels, Each retest within this range continues to show strong rebound potential, making the next major breakout towards $40, $65, and ultimately $86 increasingly plausible if momentum builds into Q4 and beyond.
Final Thoughts: AVAX Price Rebound Momentum Building
Institutional demand, technical signals, and liquidity behavior all point towards a developing recovery phase for AVAX crypto. The confluence of the SPAC treasury purchase, TD Sequential buy setup, and strong on-chain liquidity zones reflects a well-supported base forming around $19 to $20.
If AVAX price successfully clears $23 to $25 levels, it could trigger an extended move towards $40+ as broader sentiment improves. Avalanche appears to be entering an early accumulation stage, one that, if sustained, may define the foundation for its next major cycle expansion.