AVAX Price Surge Hinges on Break Above Lower High

Avalanche's (AVAX) recent price surge has left many wondering if it's here to stay. The altcoin recently posted a 12% gain in daily swing, but its sustainability is still questionable.

Looking at the 1-month Liquidation Heatmap on CoinGlass, there appears to be limited to no upside liquidity cluster above the current price. This could mean that AVAX relies heavily on momentum to continue surging. On the other hand, multiple downward clusters indicate that the price may be pulled lower, potentially erasing recent gains.

The Accumulation/Distribution Indicator (A/D) reveals that there has been significant buying in AVAX, with a volume-weighted purchase of 122 million at the time of writing. However, the Aroon Indicator suggests that while accumulation is ongoing, it's not a clear-cut signal. The indicator confirms a bullish trend, but with a minimal gap between Aroon Up and Aroon Down.

To solidify its bullish structure, AVAX needs to break above the lower high level and close decisively above it. This would nullify the structural leg down the asset has suffered in prior weeks and confirm a bearish trend reversal.