AVAX breaks key resistance, surges 10%: Is a bullish rally on the cards?
Avalanche investors seem to be accumulating in anticipation of a bullish rally.
- AVAX broke a key resistance with a 10% surge in 48 hours.
- Metrics signaled bullish momentum.
Avalanche [AVAX] has surged by over 10% in the last 48 hours. This significant bullish momentum managed to breakout over the key resistance level at $29.22. The price action has caught the market’s attention.
AVAX was eyeing the $31 ranging channel support level as its next significant target at press time. If the resistance level is broken over, then AVAX will be on a bullish rally to higher levels.
Whale activity paints a bullish picture
According to AMBCrypto’s analysis of IntoTheBlock data, large transactions have significantly increased. Actually, $713.98 million worth of AVAX transactions exceeding $100,000 were traded in the past seven days.
This surge in whale activity often precedes significant price movements.
Holder profitability has also surged by 7.69%. This meant reduced selling pressure, as more holders found themselves in profit.
The concentration of tokens in large holders’ wallets also remained high at 72% at press time, indicating a significant whale influence on price movements.
Avalanche ecosystem growth?
AMBCrypto further analyzed Santiment’s data to evaluate social and development activities. Notably, the Social Volume data showed several spikes, indicating growing interest and discussion within the crypto community.
This increased Social Volume often correlates with price movements and leads the way to further price gains.
Development Activity remained consistently high as well. This correlated with the ongoing improvements to the AVAX ecosystem.
This sustained effort is a positive sign for long-term investors, as it indicated continued token innovation and progress.
Liquidation adds to rally
AMBCrypto’s look at the liquidation heatmap data via Coinglass indicated a concentration of liquidation levels above the current price level.
This suggests that a move above these levels could fuel market liquidations, potentially accelerating AVAX’s upward momentum.
Realistic or not, here’s AVAX market cap in BTC’s terms
AVAX’s increased whale activity and consistent development activities, all suggested a potential bullish rally.
However, the $31 resistance level could prove to be a significant hurdle in AVAX’s hopes.
