AVAX price is showing signs of a potential breakout, bouncing back as it hit $23 and now is ranging below that. However, this recovery comes after a prolonged 70% decline that pushed the altcoin investors deep into bearish territory. Now, as whale activity soars and bullish patterns take shape, AVAX price could be poised for a major rally. But there’s one condition: it must close a daily candle above the $21 level. Let’s dive into the data driving this renewed momentum and where Avalanche could be headed next.
Whales Are Back: Transaction Volumes Jump 169%
One of the strongest bullish signals behind the recent AVAX price rally is a sudden surge in large-scale transactions. According to IntoTheBlock, whale activity around Avalanche has skyrocketed, with large transaction volumes jumping by 169% at press time. This indicates that significant holders and institutional participants are returning to the crypto market, supporting the current rebound.
Furthermore, the last day’s 22% increase in trading volume indicates that more capital is entering the market and that trader confidence is growing. Strong demand is evident at these levels as AVAX is currently trading above $22, up more than 13% in a single day. However, technical indicators indicate that a critical $21 breakout is necessary to move the market to $25.15.
Bullish Patterns Forming: Is $25.15 the Next Stop?
From a technical standpoint, the Avalanche price appears to be breaking free from a period of long-term bearish consolidation. Avalanche has created a bullish engulfing candle near the bottom of a declining channel on the weekly chart, suggesting a possible change. A bullish cup and handle pattern is developing on the daily chart, with the neckline situated exactly at the $21 level.
This technical setup, combined with surging whale activity and broader market recovery, adds to the altcoin’s bullish case. If AVAX price closes above $21, the immediate upside target is $25.15, a potential 21% gain. Furthermore, if the rally sustains, the next major resistance is at $31.40, marking an additional 25% rise from breakout levels.
Still, Avalanche trades below its 200 EMA, a sign that broader trend confirmation may require more momentum. However, the Relative Strength Index (RSI) currently sits at 56. This leaves enough room for a continued upward move.
Can AVAX Sustain the Momentum or Is a Reversal Imminent?
Looking ahead, the Avalanche price outlook depends heavily on whether the asset can sustain buying pressure and break key resistance. A close above $21 could spark renewed bullish momentum across the crypto market. This is especially among altcoin investors eyeing reversal signals. Traders should keep a watchful eye out for a confirmed breakout with follow-through buying, even though the volume and RSI trends are encouraging. If this happens, the rise may continue considerably higher, providing more gains in the upcoming weeks.
What’s Next: Will AVAX Break Out or Break Down?
The AVAX price has surged impressively, but the real test lies ahead. Avalanche must close above the $21 resistance level to confirm the bullish thesis. With whale participation rising, trader optimism increasing, and technical patterns turning favorable, AVAX is at a make-or-break point. If buyers step up, a move toward $25.15, and possibly $31.40, is well within reach. But without a decisive breakout, the rally could stall. One thing is clear: Avalanche is back on traders’ radars, and the next few days will be critical.
Source: Coinfomania / Digpu NewsTex