Is Avalanche (AVAX) Bullish in 2026?

Avalanche (AVAX) recently triggered a notable technical event after moving below its internal minimum, resulting in a clear Sell-Side Liquidity sweep. What's next?

Instead of continuing lower after clearing stop losses beneath the structure, the market produced a strong reaction, raising the question of whether the move marked continuation of weakness or the beginning of a structural shift. The reaction that followed makes this setup particularly important from a technical perspective.

Avalanche (AVAX) technical analysis

AVAXUSD - 1 Day Time Frame

After sweeping liquidity, AVAX reacted strongly and rallied nearly 20% within a single day. This was not a gradual move higher but an impulsive expansion that quickly shifted short-term sentiment. Such a reaction following a liquidity sweep may indicate that downside pressure was absorbed and that buyer participation increased.

During this bullish expansion, price also closed above the starting point of the bearish price delivery from four days earlier. This close is technically important because it represents a Change In State of Delivery (CISD). In simple terms, the market stopped producing clear bearish continuation and began transitioning into a more constructive structure. The prior bearish flow was invalidated, and a new delivery phase emerged.

Avalanche (AVAX) price target

As long as this bullish structure remains intact and price does not close back below the blue support zone, probabilities could favor continuation. In that case, AVAX may expand toward the nearest Buy-Side Liquidity levels, specifically the price levels of $10.3, $12.3, and $15, which now act as logical upside reference areas following the structural shift.