The cryptocurrency market is witnessing a robust bull run, and Avalanche (AVAX) appears to be attracting significant attention from large investors, often referred to as “whales.” This shift in investment activity suggests a potentially promising outlook for AVAX, aligning it with the broader bullish momentum seen across various digital currencies.
Why Is the AVAX Price Increasing?
On November 9, 2024, AVAX experienced a substantial increase in large transaction volume, surging by an impressive 338% within just 24 hours. This data, provided by the on-chain analytics firm IntoTheBlock, highlights a critical metric used to gauge market sentiment. When whales and significant investors engage in substantial transactions, it typically signals a bullish trend, particularly in the current market environment.
Moreover, a comprehensive analysis by IntoTheBlock reinforces the bullish outlook for AVAX. It’s essential for traders to recognize that this marked increase in transaction volume coincides with AVAX nearing a pivotal breakout point at a crucial resistance level.
Avalanche (AVAX) Technical Analysis and Upcoming Levels
Expert technical analysis indicates that AVAX is approaching a formidable resistance level at $30. Historically, this threshold has served as a significant point of selling pressure, leading to notable price retracements. Since June 2024, AVAX has tested this level multiple times, each occasion resulting in selling pressure and subsequent price declines.
However, current market sentiments suggest that the historical pattern may not repeat itself this time. If AVAX manages to breach this resistance level and secure a daily close above $31.20, the asset could potentially rally by approximately 35%, propelling it to the $42 mark in the coming days.
Presently, AVAX is trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating an upward trend. Additionally, on the four-hour timeframe, a golden crossover has emerged, hinting at a potential rally in the near future.
Current Price Momentum
As of the latest update, AVAX is trading near $28.80, marking a price increase of over 3.15% in the past 24 hours. However, during the same period, its trading volume decreased by 10%, indicating reduced participation from traders and investors compared to previous days.
Meanwhile, AVAX’s open interest has climbed by 5.9% over the past 24 hours, signifying a growing interest from traders as they bolster their open positions. This development could further fuel the asset’s upward momentum.
