AVAX shows bullish divergences targeting $12–$15 as Avalanche Treasury unveils a $1B lockup plan reducing circulating supply.
The price of AVAX is drawing renewed attention as traders observe stronger reversal signals across several market indicators.
Market sentiment has weakened in recent weeks, yet the technical structure suggests that Avalanche may be preparing for a larger move.
Some analysts note that the setup resembles early stages of a major trend shift.
Technical Indicators Show Broad Market Divergences
Avalanche has seen its token trade near recent lows while showing bullish divergences on several timeframes.
Analysts tracking momentum tools observed that the token formed higher lows on key indicators even as the price tested support.
They also noted that leverage had been reduced across major trading platforms.
The reduction in leveraged positions has been viewed as a reset in market exposure.
Traders reported that open interest levels dropped as liquidations cleared excess positioning.
This environment gave more attention to spot trading activity and reduced short-term volatility.
Market trackers also stated that the technical structure resembles earlier phases of trend reversals seen in other assets.
They pointed to slower selling pressure across recent sessions. They also noted that the market maintained a steady range despite lower sentiment.
Projected Recovery Range Gains Attention
Price models shared by analysts suggested that AVAX could move toward the $12 to $15 range if current conditions hold.
These models were based on structural support zones and previous recovery patterns. They also included volume studies showing renewed activity at lower levels.
Some traders stated that the recent divergences may support a move of 44% to 80% from current prices.
These estimates were tied to past recovery periods that began after similar market resets. They also noted that the pace of the move would depend on broader crypto market conditions.
Market watchers added that sentiment remained low across major trading forums. They said that this type of environment often appears ahead of larger price adjustments.
They also noted that the asset’s chart continues to show steady accumulation phases.
Related Reading: Is AVAX at a Macro Bottom? 2,400% Upside Scenario Explained
Avalanche Treasury Announces $1 Billion Lockup Plan
A new development also arrived from Avalanche Treasury Co., which announced a $1 billion plan to lock up AVAX.
The program is designed to give institutions direct access to the asset in a regulated format.
It also creates a structure that reduces the amount of circulating supply on the open market.
The plan introduces long-term access for traditional financial institutions. It aims to provide an exposure model that can be used within regulated portfolios.
The structure includes custody, reporting, and settlement tools used across institutional markets.
Market analysts noted that large token lockups reduce liquid supply. They stated that similar programs in other ecosystems attracted long-term demand.
They also said that interest from traditional financial institutions continues to grow as new access models emerge.
Source: https://www.livebitcoinnews.com/avax-signals-major-reversal-as-bullish-divergences-stack-up/
