AVAX Rally Built on Short Liquidations, Can Momentum Sustain?

AVAX has been on a tear lately, surging by 8.44% in a single day and trading above every moving average on the board. However, this rally may have a hidden crack. The price is currently trading at around $8.57, with an immediate resistance cluster at $8.93 representing only a 4% push from here.

The real test for AVAX lies in reaching the strong resistance level of $9.30, but the oscillators are not confirming this momentum. The Stochastic is firmly in overbought territory, and the MACD histogram has flatlined at zero, indicating exhaustion.

Furthermore, a 15.71% collapse in open interest suggests that this rally may be built on short liquidations rather than organic demand. This setup creates a divergence between structure and momentum, which is often a precursor to volatility shakeouts.