Avalanche Price Surges 20.61% as Whale Activity Jumps 169%
2min read Avalanche has recently garnered significant attention from traders due to indications of a potential price rally. Following a 70% correction, bullish signals now suggest a possible reversal. The AVAX price has been fluctuating between $20.05 and $22.89, marking a 20.61% gain over the past week and a 12.10% increase over the last 24 hours. The market is closely monitoring whether the Avalanche price can sustain above the critical $21 level.
A key driver of this positive outlook is the recent surge in whale activity. On-chain analytics indicate that Avalanche’s large transaction volume has jumped significantly by 169%. This surge points toward renewed interest from substantial investors, aligning with a 22% spike in trading volume. These developments suggest that momentum is building as traders and large investors prepare for a potential breakout. Technical indicators and pattern analysis add weight to this outlook, making AVAX news a key focus in the market.
The behavior of large investors often acts as a leading indicator within crypto markets. The massive 169% spike in large transaction volume for AVAX suggests whales are accumulating Avalanche around current price levels. They are likely positioning themselves before an anticipated significant price move. Such activity introduces liquidity and signals confidence regarding the cryptocurrency’s short-term prospects.
Institutional interest gives credibility to the developing bullish case for this digital currency. These entities usually conduct thorough technical and fundamental analysis before entering positions. Therefore, their increased presence can signify confirmation of potential upward trends. As AVAX approaches key resistance levels near $23.46 and $25.12, participation from whales and institutions may provide the necessary push to break these barriers. If that occurs, a move toward the $25.15 mark, or potentially higher, becomes increasingly plausible.
Technical indicators on the AVAX/USD daily chart suggest a potential reversal change after breaking out of a descending channel. Adding to the optimism, a bullish cup and handle pattern appears to be taking shape. This classic chart formation often precedes sharp upward price movements. The pattern places the AVAX price at a critical point, trading just beneath its neckline. A sustained close above $21 would confirm the breakout, signaling strong upside potential.
This digital currency’s price behavior resembles a coiling pattern. In this pattern, price volatility usually narrows within a tight range before a decisive breakout. Historically, such setups frequently lead to significant price movement in the breakout direction. With the Relative Strength Index nearing 56 and breaking into bullish territory, Avalanche seems to be gaining momentum. Despite trading below the 200 EMA, often a bearish signal, the coiling setup and rising volume suggest that the market is ready for action.
The market is intensely focused on whether the Avalanche price can maintain a daily close above $21. A successful close at or above this level could set the stage for a rally, pushing prices toward $25.15. From there, bullish momentum could extend gains, reaching $31.40. This seems likely if resistance levels are overcome with high trading volume. Price zones surrounding $23.46 and $25.12 are being monitored as key potential turning points.
If AVAX fails to close above the $21 mark, however, it could invalidate the current bullish outlook. This might lead to price consolidation or a retest of support levels. Still, broader market sentiment is turning positive as Bitcoin leads a crypto recovery. This shift enhances arguments favoring altcoin rallies. Avalanche stands as a prime candidate to benefit from the surge.
As Avalanche nears key resistance levels with growing momentum, the recent AVAX price action suggests a bullish breakout. Whale accumulation patterns, highlighted by recent market activity, also support this view. The formation of a cup and handle pattern provides a compelling technical setup for investors. This setup combines effectively with coiling price action and a rising RSI reading. With trading volume and institutional interest increasing, the stage appears set for AVAX to attempt a breakout.
Nevertheless, traders should exercise caution until a daily close above $21 is confirmed. While current indicators appear promising for Avalanche, failure to sustain price action above this threshold could delay the rally. For now, the Avalanche price remains firmly on the radar of analysts and investors, placed at a potentially pivotal moment in its market trajectory.
