In the midst of the ongoing bull market, new insights have emerged indicating that significant investors, often referred to as “whales,” are increasingly interested in Avalanche (AVAX). This shift could signal a potential positive trend for the cryptocurrency. Many cryptocurrencies are currently witnessing bullish breakouts, and with the involvement of large investors, AVAX seems poised to join this upward trajectory.
Understanding the Rise in AVAX Price
Recent data from November 9, 2024, highlights a substantial increase in AVAX’s large transaction volume, surging by 338% in just 24 hours, as reported by the on-chain analytics platform IntoTheBlock. This metric serves as a crucial indicator, revealing that whales and significant investors are actively engaging in major transactions. Such activity often suggests a bullish trend in the prevailing market conditions.
Furthermore, a thorough analysis by IntoTheBlock reinforces the bullish outlook for AVAX. This heightened transaction volume is particularly noteworthy as it coincides with AVAX nearing a breakthrough of a key resistance level, potentially setting the stage for further price appreciation.
Avalanche (AVAX) Technical Analysis and Future Projections
Expert technical analysis indicates that AVAX is approaching a formidable resistance level at $30. Historically, this price point has been a pivotal area where selling pressure intensifies, leading to significant price corrections. Since June 2024, AVAX has encountered this level multiple times, each instance resulting in a dip due to heightened selling activity.
However, the current market sentiment suggests a deviation from historical patterns. Should AVAX successfully breach this resistance and close a daily candle above $31.20, it could potentially rally by approximately 35%, targeting the $42 mark in the forthcoming days.
Presently, AVAX is trading above the 200 Exponential Moving Average (EMA) on the daily chart, a signal of an ongoing uptrend. Additionally, a golden crossover has manifested on the four-hour chart, hinting at a possible upward movement in the near future.
Analyzing the Current Price Momentum
As of the latest update, AVAX is trading around $28.80, experiencing a price increase of over 3.15% within the last 24 hours. Despite this upward movement, trading volume has decreased by 10%, reflecting reduced trader and investor participation compared to previous days.
Conversely, AVAX’s open interest has climbed by 5.9% over the past 24 hours, indicating a growing interest among traders as they expand their open positions. This increase in open interest could be a precursor to heightened market activity, as traders position themselves for potential price movements.
In conclusion, the combination of whale interest, technical indicators, and current market behavior suggests a promising outlook for AVAX. As traders and investors continue to monitor these developments, AVAX could very well experience further upward momentum in the days to come.
