Avalanche's Price Surges 13% as Whale Activity Jumps 169%

AVAX price has shown signs of a potential breakout, bouncing back to $23 after a prolonged 70% decline that pushed altcoin investors into bearish territory. This recovery is driven by a surge in whale activity and the formation of bullish patterns. However, for AVAX to sustain this momentum, it must close a daily candle above the $21 level.

Whale activity around Avalanche has significantly increased, with large transaction volumes jumping by 169%. This indicates that significant holders and institutional participants are returning to the crypto market, supporting the current rebound. The last day’s 22% increase in trading volume further suggests that more capital is entering the market and that trader confidence is growing. AVAX is currently trading above $22, up more than 13% in a single day. Technical indicators suggest that a critical $21 breakout is necessary to move the market to $25.15.

From a technical standpoint, Avalanche appears to be breaking free from a period of long-term bearish consolidation. A bullish engulfing candle has formed near the bottom of a declining channel on the weekly chart, suggesting a possible change. Additionally, a bullish cup and handle pattern is developing on the daily chart, with the neckline situated exactly at the $21 level. This technical setup, combined with surging whale activity and broader market recovery, adds to the altcoin’s bullish case. If AVAX price closes above $21, the immediate upside target is $25.15, a potential 21% gain. Furthermore, if the rally sustains, the next major resistance is at $31.40, marking an additional 25% rise from breakout levels.

However, Avalanche still trades below its 200 EMA, indicating that broader trend confirmation may require more momentum. The Relative Strength Index (RSI) currently sits at 56, leaving enough room for a continued upward move. The outlook for Avalanche depends heavily on whether the asset can sustain buying pressure and break key resistance. A close above $21 could spark renewed bullish momentum across the crypto market, especially among altcoin investors eyeing reversal signals. Traders should watch for a confirmed breakout with follow-through buying, as the volume and RSI trends are encouraging. If this happens, the rise may continue considerably higher, providing more gains in the upcoming weeks.

The AVAX price has surged impressively, but the real test lies ahead. Avalanche must close above the $21 resistance level to confirm the bullish thesis. With whale participation rising, trader optimism increasing, and technical patterns turning favorable, AVAX is at a make-or-break point. If buyers step up, a move toward $25.15, and possibly $31.40, is well within reach. But without a decisive breakout, the rally could stall. One thing is clear: Avalanche is back on traders’ radars, and the next few days will be critical.