Avalanche (AVAX) has turned bullish after months of lower lows, crossing the $27 resistance level. This momentum could push AVAX to $32 if sustained. Recent short liquidations contributed to the rally, as net shorts surged on Binance around September 23-24, followed by a spike in buy volume.

Despite a 2.71% dip in the last 24 hours, AVAX remains in a cup and handle pattern, signaling a potential recovery uptrend. On-chain data shows that large holder inflows peaked at 4.97 million AVAX this week, with demand still outweighing sell pressure.

While demand has slowed, AVAX inflows remained higher than outflows, indicating continued bullish sentiment despite recent fluctuations.