As the cryptocurrency market enjoys a significant bull run, recent data has highlighted a noteworthy trend: large-scale investors, commonly known as whales, are starting to focus on Avalanche (AVAX). This development could signal a bullish outlook for the cryptocurrency. With many digital currencies experiencing upward momentum, AVAX seems poised to continue this trend with increased whale activity.
Why is the AVAX Price Rising?
On November 9, 2024, a remarkable surge in AVAX’s large transaction volume was observed, marking a 338% increase over the previous 24 hours, according to on-chain analytics firm IntoTheBlock. This metric is crucial as it reflects significant transactions made by whales and prominent investors, suggesting a positive market sentiment. The data points to a potential bullish trend for AVAX during the ongoing bull market.
Furthermore, a comprehensive analysis of various parameters by IntoTheBlock continues to support the bullish outlook for AVAX. It’s essential for traders to recognize that this surge in large transaction volume coincides with the AVAX price nearing a breakout from a critical resistance level.
Avalanche (AVAX) Technical Analysis and Upcoming Levels
Expert technical analysis positions AVAX near a formidable resistance level at $30. Historically, this price point has served as a barrier, often resulting in selling pressure and subsequent price declines. Since June 2024, AVAX has tested this level over five times, each instance leading to a downturn.
However, given the current positive market sentiment, many analysts believe this time may be different. If AVAX successfully breaks this resistance and closes a daily candle above $31.20, the cryptocurrency could potentially see a 35% increase, reaching the $42 mark in the near future.
Presently, AVAX is trading above the 200 Exponential Moving Average (EMA) on the daily chart, indicating an uptrend. Additionally, a golden crossover on the four-hour chart suggests further potential for an upward rally in the days ahead.
Current Price Momentum
At the time of writing, AVAX is priced around $28.80, having experienced a 3.15% price increase in the last 24 hours. However, its trading volume has decreased by 10%, indicating reduced participation from traders and investors compared to previous days.
On a positive note, AVAX’s open interest has risen by 5.9% over the past day, highlighting growing interest from traders as they expand their open positions. This increased interest could further fuel AVAX’s price momentum as the market continues to evolve.
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