As the price showed resilience at the $27 level, AVAX shorts were liquidated.

Despite the resurgence of bearish expectations, AVAX bulls are showing resilience.

When the price breaks through the short-term resistance level, short sellers suffer losses.

Avalanche [AVAX] appears to have turned bullish after trading lower for several months. The performance so far this month highlights strong momentum, having just broken through the short-term resistance at $27.

If it can sustain its recent gains, this outcome could lead to a rise in its price to $32 in the near term.

AVAX bulls are likely to get a boost from short liquidations. Expectations are high for a reversal towards the $27 price level.

According to Hyblock Capital, Binance’s net shorts (green) surged between September 23 and 24.

AMBCrypto also saw a significant increase in buying volume (blue) on September 24, which may explain why AVAX broke through resistance.

Meanwhile, long positions (brown) have also picked up again following the same day’s decline.

Liquidations could pave the way for more bullish momentum, especially when combined with a surge in demand. The AVAX heat map highlights a surge in liquidations at the $28.20 price level over the past 24 hours.

The heat map shows that liquidity has reached these levels. However, the results do not seem to indicate that the strong momentum will continue.

AVAX longs have since slowed, and as of this writing, are down 2.71% in the past 24 hours.

At the time of writing, AVAX is valued at $27.67. This result suggests that current levels may create a degree of uncertainty about its ability to garner strong demand at current levels.

However, zooming in on its chart shows that it has been in a cup-and-handle pattern.

The pattern suggests that AVAX is in the early stages of a recovery uptrend. If this assessment holds true, it would mean that it will be biased towards the bulls at least for the next few weeks or months.

From the demand perspective, on-chain data shows that bulls are still dominant.

This week, AVAX inflows to large addresses (large inflows) peaked at 4.97 million coins, while large outflows peaked at 3.67 million coins.

According to the latest data on September 24, the inflow to addresses has slowed to 2.45 million AVAX. However, this is still higher than the 1.34 million AVAX outflow from large holders on the same day.

This suggests that demand slowed significantly around the same time that shorts were liquidated, but still outweighed selling pressure.