Avalanche inflows surge past $120M, longs hit 76%: AVAX breakout ahead?

Key Takeaways

Avalanche surged 35%, led by $120 million liquidity inflows, 20 million daily transactions, and rising social buzz. Technical breakout and bullish Funding Rates suggest AVAX may target $26.94 resistance for further upside.

Avalanche [AVAX] has dominated net liquidity inflows over the last 30 days, attracting over $120 million, outpacing Unichain, Sei [SEI], and Aptos [APT] by a wide margin. 

This capital inflow reflects rising cross-chain investor trust in AVAX, particularly amid shifting macro conditions and renewed risk appetite. 

The surge coincides with increasing ecosystem engagement, signaling that market participants may be rotating into Avalanche in anticipation of a breakout.

 At the time of writing, AVAX traded at $24.79, up 9.07% in the past 24 hours, suggesting short-term bullish conviction as this influx starts translating into upward price action.

Has AVAX finally escaped its downtrend?

AVAX has decisively broken out of its descending channel, which had held since December 2023. This breakout marks a key technical shift and opens the door to a potential move toward the $26.94 resistance zone. 

Historically, such exits from downward channels have triggered momentum-driven rallies, especially when accompanied by strong fundamentals.

Moreover, the breakout was supported by rising volume and price structure tightening prior to the breakout. 

Therefore, the technical breakout not only invalidates prior bearish pressure but also introduces the possibility of a mid-term bullish continuation.

Source: Santiment

Is rising social chatter fueling this move?

Santiment data shows that AVAX’s Social Dominance sharply spiked to 0.729%, at press time, its highest level in over two months. Social activity tends to precede or accompany speculative waves, especially in altcoins. 

This rise in chatter suggests that more participants are paying attention to Avalanche, increasing the likelihood of further momentum. 

The uptick aligns with AVAX’s 9% price gain, forming a feedback loop between price performance and retail attention. 

Consequently, rising social traction could serve as a tailwind, attracting new inflows and increasing market participation.

Source: Santiment

Are bulls regaining control of the funding landscape?

Funding Rates across exchanges have flipped positive after being largely negative throughout Q2. At the time of writing, the Aggregated AVAX Funding Rate has turned green, reflecting bullish bias among perpetual traders. 

This shift suggests that buyers are willing to pay to maintain their long exposure. Historically, prolonged negative funding followed by a positive flip has signaled market turnarounds. 

Therefore, this change not only reduces downside pressure but also confirms that derivatives traders expect continued upside in the short term.

Source: Santiment

Does the Long/Short Ratio confirm bullish conviction?

According to Binance data, long accounts dominated at 75.98%, with the Long/Short ratio reaching 3.16 at the time of writing.

This strong skew suggests that retail and institutional traders alike are positioned for further gains. 

Although an overly crowded long trade can invite volatility, the current funding rate stability and modest liquidation levels ($2.2M short vs. $178K long) indicate a healthy positioning environment. 

Therefore, the prevailing sentiment points to elevated confidence rather than reckless exuberance, reinforcing the possibility of continued upside.

Source: Coinglass

Can AVAX maintain its lead and break above $26?

Avalanche’s dominance in liquidity inflows, breakout from a multi-month downtrend, and increasing social buzz all point toward a potential sustained rally. 

The positive funding flip and high Long/Short Ratio further confirm bullish conviction across markets. 

However, the $26.94 resistance remains a critical hurdle. If bulls reclaim and hold above this level, AVAX could extend its gains and establish a stronger bullish structure in the near term.