TLDR
- AVAX could rally 21% to $25.15 if it closes above the $21 level
- Large transaction volume jumped 169%, indicating strong whale and institutional interest
- Currently trading around $20.05-$21.72 with increasing trading volume
- Technical analysis shows AVAX breaking out of a descending channel pattern
- Price action resembles a coiling pattern, building pressure for a potential significant breakout
Avalanche (AVAX) shows signs of an upward trajectory after suffering a 70% price decline. Recent price action and growing trader interest suggest a possible bullish run for the cryptocurrency in the coming days, according to on-chain data and technical analysis.
Current market data shows AVAX trading between $20.05 and $21.72, with a market cap of $9.03 billion. The cryptocurrency has recorded an 8.31% increase in the last 24 hours and an 11.68% gain over the past week.
The most telling sign of renewed interest comes from on-chain analytics firm IntoTheBlock, which reported a massive 169% jump in large transaction volume. This surge indicates heightened participation from whales and institutional investors.
Trading volume has also increased by 22% over the past 24 hours, showing growing trader activity following recent price movements.
Avalanche
AVAX Price
Technical Analysis Reveals Bullish Patterns
Technical indicators for AVAX present mixed but predominantly bullish signals. On the weekly timeframe, AVAX appears to be hovering within a descending channel pattern after successfully retesting the lower boundary by forming a strong bullish engulfing candlestick pattern.
On the daily timeframe, AVAX has broken out of a descending channel pattern and sits on the verge of breaking out of a bullish cup and handle formation. This recent breakout above a strong bearish hurdle signals major upside potential.
The daily chart reveals AVAX trading near the neckline of this bullish pattern, which appears to be a make-or-break point for the asset.
The price action resembles what analysts call a “coiling pattern,” where market pressure builds within a tight range before a breakout occurs.
Critical Price Levels to Watch
Based on recent price action, if AVAX breaks out and closes a daily candle above the $21 level, there’s a strong possibility it could rally by 21% to reach the $25.15 level initially.
If upward momentum continues, the asset could potentially gain another 25%, reaching $31.40 in the coming days.
Key resistance levels to monitor are at $23.46 and $25.12, which have served as turning points in AVAX’s recent chart history.
Despite trading below the 200 Exponential Moving Average (EMA) – typically an indicator of a downtrend – AVAX’s Relative Strength Index (RSI) sits near 56, suggesting room for an upside rally. Having crossed the neutral zone, the RSI signals that the asset could gain further bullish momentum.
Market Context Supports Potential Breakout
The broader cryptocurrency market is shifting from a downtrend to a recovery phase, which benefits altcoins like AVAX. Bitcoin’s recent price rise has had a positive effect on the overall market sentiment.
While trading volume has remained low during recent consolidation periods, AVAX maintains a bullish structure, suggesting growing demand and accumulation behind the scenes rather than market weakness.
This quiet consolidation period may represent an opportunity for investors as the cryptocurrency positions itself for a potential breakout.
The current price compression and relatively low trading volume likely indicate a period of accumulation rather than market weakness, according to analysis.
The bullish thesis for AVAX remains valid only if the asset closes a daily candle above the crucial $21 level. Failure to maintain this level could invalidate the rally prediction.
Current chart analysis points to important support ranges from which AVAX should bounce back. If these levels hold and buying pressure increases, AVAX appears poised for its next upward move.
