Avalanche's AVAX Sees 169% Transaction Volume Surge, Bullish Momentum Builds
1min read Avalanche’s native token, avax, has experienced a significant surge in large transaction volumes, with a 169% increase reported by blockchain analytics provider IntoTheBlock. This substantial rise in transaction activity suggests a growing interest from both whales and institutional investors, fostering a bullish sentiment around the asset. Such heightened trading activity often correlates with price movements, implying that increased investor participation may precede further price increases.
At its current market cap, this surge in transaction volume marks a critical juncture for AVAX. The asset is moving beyond previous price resistance levels, potentially signaling a broader recovery trend for the altcoin. As of the latest reports, AVAX is trading at approximately $20.05, observing a minor decline of 2.50% in the last 24 hours. However, a notable increase in overall trading volume of 22% indicates a significant uptick in trader activity, reinforcing the bullish narrative surrounding the asset.
According to recent technical analysis, AVAX is set up for potential upward movement. The asset is trading within a larger descending channel pattern on a weekly timeframe, with a bullish engulfing candlestick pattern emerging, suggesting a shift in momentum to the upside. On a daily timeframe, AVAX is experiencing a breakout from its descending channel and seems to be attempting to form a bullish cup and handle pattern. The breakout above a significant resistance level indicates promising upside potential for the asset.
This daily chart further indicates that AVAX is trading near the neckline of a crucial bullish pattern, designating it as a make-or-break point. A breakout and close above the $21 threshold could signify an initial surge of 21%, leading towards a target price near $25.15. If positive momentum continues, further gains could push AVAX up another 25% to reach approximately $31.40 in the near term. Analysts have noted that if AVAX closes a daily candle above $21, it could rally towards $25.15—an essential benchmark for traders to watch.
While AVAX is currently trading below its 200 Exponential Moving Average (EMA), indicating a prevailing downtrend, the asset’s Relative Strength Index (RSI) sits near 56—suggesting ample room for upward movement. This crossing above the neutral zone hints at possible bullish momentum, although confirmation through strategic price levels remains essential. Ultimately, the bullish outlook for AVAX will hinge on its ability to maintain its price above the $21 closing level; otherwise, the prevailing upward momentum may dissipate.
In summary, Avalanche’s native token, AVAX, is currently positioned for potential upside, driven by increased trading activity and significant transaction volumes. Its recent technical patterns indicate promising prospects, but critical price levels will dictate its next movements. Traders should stay vigilant for breakout opportunities while considering the prevailing market dynamics.
