AVAX Sees 169% Surge in Large Transactions, Sparking Speculation of Potential Price Rally Above $21 Level

• Avalanche’s native token, AVAX, is witnessing renewed momentum as large transaction volumes surge significantly, indicating robust interest from institutional investors.

• The blockchain analytics provider, IntoTheBlock, suggests that this recent spike in large transactions may herald a bullish trend for AVAX, as market interest intensifies.

• As noted by analysts, “If AVAX closes a daily candle above $21, it could rally towards $25.15—an essential benchmark for traders to watch.”

This article examines the recent surge in Avalanche’s AVAX transactions and potential price movements, providing critical insights for investors and traders.

169% Jump in Large Transactions Indicates Increased Interest

Recent data from on-chain analytics firm IntoTheBlock indicates that there has been a substantial increase of 169% in large transaction volume for AVAX. This spike suggests that participation from both whales and institutional investors is on the rise, fostering a bullish sentiment around the asset. Notably, such trading activity often correlates with price movements, implying that heightened investor activity may precede further price increases.

At the current market cap, this increase in transaction volume marks a pivotal moment for AVAX, particularly as it moves beyond previous price resistance levels, potentially signaling a broader recovery trend for the altcoin.

Source: IntoTheBlock

As of the latest reports, AVAX is trading at approximately $20.05, observing a minor decline of 2.50% in the last 24 hours. However, a notable increase in overall trading volume of 22% indicates a significant uptick in trader activity, reinforcing the bullish narrative surrounding the asset.

Technical Analysis: Key Price Levels and Potential Breakouts

According to COINOTAG’s recent technical analysis, AVAX currently appears to be set up for potential upward movement. The asset is trading within a larger descending channel pattern on a weekly timeframe. A bullish engulfing candlestick pattern has emerged, suggesting that momentum may be shifting to the upside.

On a daily timeframe, AVAX is experiencing a breakout from its descending channel and seems to be attempting to form a bullish cup and handle pattern. The breakout above a significant resistance level indicates a promising upside potential for the asset.

Source: TradingView

This daily chart further indicates that AVAX is trading near the neckline of a crucial bullish pattern—designating it as a make-or-break point. A breakout and close above the $21 threshold could signify an initial surge of 21%, leading towards a target price near $25.15. If positive momentum continues, further gains could push AVAX up another 25% to reach approximately $31.40 in the near term.

Mixed Signals from Technical Indicators

While AVAX is currently trading below its 200 Exponential Moving Average (EMA), indicating a prevailing downtrend, the asset’s Relative Strength Index (RSI) sits near 56—suggesting ample room for upward movement. This crossing above the neutral zone hints at possible bullish momentum, although confirmation through strategic price levels remains essential.

Ultimately, the bullish outlook for AVAX will hinge on its ability to maintain its price above the $21 closing level; otherwise, the prevailing upward momentum may dissipate.

Conclusion

In summary, Avalanche’s native token, AVAX, is currently positioned for potential upside, driven by increased trading activity and significant transaction volumes. Its recent technical patterns indicate promising prospects, but critical price levels will dictate its next movements. Traders should stay vigilant for breakout opportunities while considering the prevailing market dynamics.