- AVAX broke a key resistance with a 10% gain in 48 hours.
- The numbers indicated bullish momentum.
Avalanche [AVAX] has risen by more than 10% in the past 48 hours. This significant bullish momentum managed to break the key resistance level at $29.22. The price action has caught the market’s attention.
AVAX saw the $31 channel support level as the next major target at the time of writing. If the resistance level is broken, AVAX will stage a bullish rally towards higher levels.
Source: TradingView
Whale activity paints a bullish picture
According to AMBCrypto’s analysis of IntoTheBlock data, large transactions have increased significantly. In fact, $713.98 million worth of AVAX trades over $100,000 were traded in the last seven days.
This increase in whale activity often precedes significant price movements.
Holder’s profitability also increased by 7.69%. This meant reduced selling pressure as more holders made profits.
The concentration of tokens in major holders’ portfolios also remained high at 72% at the time of writing, indicating significant whale influence on price movements.
Source: IntoTheBlock
Growth of the avalanche ecosystem?
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 to further price gains.
Development activities also remained consistently high. This was related to the continuous improvements to the AVAX ecosystem.
This sustained effort is a positive sign for long-term investors, as it signals continued token innovation and progress.
Source: Santiment
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.
Source: Coinglass
Realistic or not, here is AVAX’s market cap in BTC terms
AVAX’s increased whale activity and consistent development activity all indicated a potential bullish rally.
However, the $31 resistance level could prove to be a major hurdle in AVAX’s hopes.