AVAX/BTC Pair Signals Strong Rally For AVAX Price

Avalanche price (AVAX) has broken out of a multi-month descending channel in July which caught the attention of many traders and could result in a strong move ahead.

The AVAX price has been trading in a bear market since December 2023, although the current strength suggests an impressive change in the technical structure.

Should those external conditions remain supportive, the move could provide a backdrop for a broader rally if momentum holds, the more so as analysts forecast higher AVAX price targets in the coming weeks.

Breakout from Channel Ignites Bullish Sentiment In Avalanche

The break above the descending channel is a key technical upside development for AVAX price action here in 2025.

Analyst Ali Martinez echoed a similar sentiment, explaining that traders could use the current momentum as a launchpad for higher momentum, if it reclaim some key levels first.

In particular, a prolonged gain above the $26 mark would likely advance the positive setup and encourage fresh capital in the market.

This assessment is further echoed by Ted Pillows, too. He shared a technical chart identifying a converging declining wedge pattern. 

The breakout from this pattern has been clean, signaling a structural shift away from lower highs and compressed price action. 

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According to Ted, this breakout opens up the possibility of a price advance into the $32 to $35 zone over the next one to two weeks, assuming the current trend remains intact.

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BTC Pair Breakout Reinforces Technical Shift

In a separate observation, CryptoKaleo pointed to the AVAX/BTC trading pair, which has now broken above a long-standing resistance trendline which was active since 2021. 

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This move carries significant implications because the AVAX price has struggled to outperform Bitcoin over the past few years, but this breakout flips everything.

The current multi-year structure break has flipped its narrative from bearish to bullish, and this act as a secondary confirmation of the AVAX/USD pairs ongoing trend reversal.

Moreover, analyst Planfomo added to the optimistic tone, projecting a potential target of $47 should AVAX successfully break out and hold above the $26–$27 range. 

Though such targets remain conditional on sustained market strength, they do highlight the increasing confidence in AVAX crypto’s technical outlook across different analysts.

On-Chain and Derivatives Metrics Signal Growing Confidence

The broader market trends indicate that the bulls are coming back in full force. The funding rates and open interest data indicate traders are leaning toward bullish scenarios. 

An increase in the funding rate is usually associated with long traders while an increasing open interest also indicates increased participation. These indications in combination signal a short-term bullish bias in AVAX price.