AVAX is at a critical support level, forming a triangular structure, with significant liquidity influx into its ecosystem.
Resistance and Support Tests
AVAX has spent the past two months forming an ascending triangle on the daily chart, marked by the rise of higher lows and a flat resistance near the $25.5–$28 range. However, the price has tested horizontal resistance six times since May without a breakout, indicating buyer exhaustion. On August 26, AVAX trades at $23.398, slightly above the critical ascending trendline.
Increasing Bearish Momentum
The 4-hour chart shows sustained bearish pressure since August 24. AVAX has printed lower highs and lower lows, indicating a minor downtrend within the larger ascending structure. Technical indicators show weakness with an RSI of 38.41, and MACD remains in bearish territory (-0.28), potentially leading to a structural shift under support.
Liquidity Growth in the Network
Despite bearish signals, AVAX saw a strong influx of capital recording over $150 million in stablecoin inflows in just 24 hours, second only to Ethereum. This liquidity surge indicates growing network usage and may set the stage for a new rally if buyers regain strength. Until the price breaks above $26 or drops below the trendline, AVAX remains in a tightening coil.
Currently, AVAX faces uncertainty in price movement as support is under pressure, while liquidity inflows may open new opportunities for buyers.
