AVAX's Rally Hinges on Clearing Lower Highs

Avalanche (AVAX) has shown clear bullish tendencies in recent days, with its price surging by over 12% in a single day. However, this rally is still questionable in terms of sustainability.

The 1-month Liquidation Heatmap reveals limited to no upside liquidity clusters above the current price, suggesting that any further gains will depend on sustained buying pressure.

On the other hand, there are multiple clusters with strong depth below the current price, which could pull the price lower and cause AVAX to lose its recent gains.

The Accumulation/Distribution Indicator (A/D) shows massive buying activity, with a volume-weighted purchase of 122 million. However, the Aroon Indicator, which uses two lines to show the market's directional bias over price, suggests that the bullishness is low, with only a minimal gap between the Aroon Up and Aroon Down lines.

For AVAX to clear the lower high level and confirm its bullish run, it needs to close above this level and maintain its momentum. If not, there's a strong chance that the price could see lower levels from here on.