Avalanche (AVAX) has recently made headlines with an impressive 24% price surge over the last 48 hours, rebounding off the $22 level and testing a critical price zone. As of now, AVAX is trading near $28, a former support level of a symmetrical triangle pattern. If this level acts as a new resistance, the altcoin’s bullish rally might face a temporary halt, affecting its short-term price trajectory.
Whale Activity And Trading Volume On The Rise
One of the main drivers behind AVAX’s price action appears to be the heightened whale activity, as observed through IntoTheBlock’s data, showing a 49% spike in whale transactions. This increase indicates significant engagement from large market participants, potentially a bullish signal for Avalanche. Additionally, trading volume is up by 14%, suggesting that retail traders are also actively participating in AVAX’s recent upswing.
Such metrics hint at a strong positive sentiment surrounding AVAX. Generally, increased whale activity and rising trading volumes reflect growing confidence in an asset, as institutional or high-net-worth traders dive in, often seen as a precursor to further price appreciation.
A Potential Pullback – Liquidation Heatmap Signals
Despite the bullish momentum, AVAX may face short-term hurdles. Coinglass data reveals a substantial liquidation pool of approximately 563,000 AVAX at the $26.73 level, signaling a potential retracement. This level may serve as a pivotal point for AVAX, either acting as a support or resistance depending on the strength of market reactions.
In the event of a pullback, liquidation pressure could temporarily drive prices lower, offering a buying opportunity for traders looking to enter the market before a potential next leg up.
Testing the Critical $28 Resistance Level
AVAX’s test of the $28 mark holds significant implications. Should the price break through and maintain support above this level, it could pave the way for another rally, positioning Avalanche to capture further gains. However, if this critical zone holds as resistance, the altcoin may experience a slight retracement before potentially regaining bullish momentum.
Market watchers will keep a close eye on AVAX’s price action, especially in light of the recent uptick in whale transactions and trading volume. The upcoming days will be crucial in determining whether AVAX can sustain its bullish stance or if a period of consolidation is on the horizon.
Also Read: Avalanche (AVAX) Eyes 12% Rally As Bullish Indicators And On-Chain Metrics Signal A Move To $28.50
As AVAX navigates these technical levels, investors are watching closely. If the altcoin manages to hold its position and break past the $28 resistance, it could be set for further gains. However, traders should be prepared for potential fluctuations as liquidation levels and whale activity may introduce short-term volatility.
In summary, Avalanche’s recent price surge reflects strong market sentiment, bolstered by whale activity and trading volume. Yet, AVAX faces a critical resistance level at $28, which may dictate its immediate price direction. For now, AVAX stands as one of the more promising altcoins in the market, but investors should stay vigilant to short-term retracements and liquidation triggers as they assess their next moves.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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