AVAX Breaks Out Above Key Levels with 3.8% Rally Fueled by Strong Demand

AVAX Briefly Climbs Above $21 Before Sellers Regain Control

Avalanche’s AVAX token attempted a breakout early Tuesday, reaching as high as $21.31, but failed to hold gains as selling pressure re-emerged across crypto markets.

Key Developments:

AVAX rose 3.8% intraday, touching a session high of $21.31 before sliding back toward $20.52.
The rally broke through prior resistance at $20.90, but momentum quickly faded amid rising profit-taking.
Volume surged to 1.33 million during the push higher, signaling initial bullish conviction.
A subsequent 5.8% drop came during the heaviest one-hour volume (40,669 units), suggesting aggressive selling at the top.
$21.15 has emerged as a new resistance zone, while support appears to be forming around $21.00.
A slowdown in volume later in the day points to a cooling trend and potential consolidation phase.

Despite the early strength, AVAX’s failure to sustain above key levels leaves traders wary. Analysts are watching for a potential retest of the $20.50 area, with directional bias hinging on broader market sentiment.