Avalanche (AVAX), the native token of the Avalanche blockchain platform, has been a hot topic in the crypto sphere recently. After a significant price surge, investors are questioning whether this bullish momentum can be sustained.
A Bullish Breakout
On June 29th, AVAX broke free from a bullish flag pattern, a technical indicator often seen as a precursor to a strong upswing. This breakout fueled a rapid 25% price increase in just two days, pushing AVAX to $27.70. This sudden surge caught many investors off guard, leaving them scrambling to capitalize on the opportunity.
Consolidation and Support
Following the initial jump, AVAX has entered a consolidation phase. The price has pulled back to around $25, a level that previously acted as strong resistance. However, this same level is now offering support, highlighting the dynamic nature of the crypto market.
While the price has dipped slightly in the last 24 hours, a break below the crucial support at $24.49 could signal a potential price decline. Conversely, if AVAX can hold above $25 and attract further buying pressure, it might attempt to reach the next resistance level around $29.22.
On-Chain Activity: A Mixed Picture
While the price action paints a bullish picture, on-chain data paints a more nuanced story. Analysis by AMBCrypto suggests a significant drop in large transactions on the Avalanche network, potentially indicating less activity from major players (whales).
Hyblock Capital’s data reinforces this notion, with the whale-to-retail ratio currently sitting at 35.16. This indicates an increase in participation from regular traders compared to whales.
However, data from Coinglass suggests a potential hurdle. Their liquidity heatmap shows a concentration of sell orders at higher prices. This could create resistance for AVAX if it attempts to push significantly higher without a strong influx of buying pressure.
A Crossroads for AVAX
Avalanche finds itself at a critical juncture. The recent price surge indicates strong momentum, but the token now faces significant resistance levels. The upcoming price action around the $24.49 support zone will be crucial in determining the token’s next move.
While the reduced whale activity is a cause for some concern, increased participation from retail traders could provide support for the price. Ultimately, the future of AVAX’s rally hinges on its ability to overcome resistance levels and attract continued buying pressure.