Avalanche [AVAX] has risen 32% since retesting the $39 support level, reflecting increasing interest and confidence among investors.
These gains bring AVAX closer to testing its key resistance level of $65, which it has not breached since mid-March.
AVAX whales take action.
AVAX's recent price surge has been accompanied by a significant increase in the number of large transactions on the network, with the number of large transactions soaring an astonishing 298% in the past 24 hours, reaching $797 million.
This further enhances the bullish sentiment surrounding the altcoin.
Meanwhile, the strong buying pressure for AVAX is also reflected in the increasing number of active addresses on the network. In the past 24 hours, the number of active addresses for the altcoin surged by 23%, indicating increased trading activity.
Notably, according to data from IntoTheBlock, approximately 80% of AVAX addresses are in profit as of the time of writing. This indicates that the majority of Avalanche market participants will benefit from the recent rise of the altcoin.
As the token approaches the $65 weekly resistance level, profit-taking holders may choose to cash out or wait for further increases, both of which will affect the price movement.
With the bullish momentum strengthening, all eyes are on the weekly resistance level of $65, which has proven to be a significant barrier for AVAX in the past.
If the price successfully breaks through this level, it will open a pathway for price increases, pushing the altcoin to a new all-time high.
Is AVAX aiming for $100?
The SMA indicator has continuously supported Avalanche cryptocurrency tokens over the past 24 hours. This suggests a positive outlook for the altcoin in the near future.
Additionally, the RSI indicator continues to trade above the overbought range, with its average trend line exceeding the same trend level. This suggests that AVAX cryptocurrency tokens may gain significant momentum this week.
If the bulls continue to gain momentum, Avalanche's price may retest its resistance level of $57.30. Maintaining a price above this level could lay the foundation for its ascent towards the upper price target of $65.50 in the future.
On the other hand, if the bears regain momentum, this altcoin may retest its $50 support level. Furthermore, if bearish sentiment intensifies, it could pull Avalanche's price towards this year's lower support level of $40.
In summary,
From a technical perspective, AVAX has recently shown quite impressive price movements. The strong ability of the altcoin to retest the $39 support level and rebound highlights the resilience of market participants. Additionally, as the number of large transactions and active addresses continues to rise, both institutional and retail investors seem to be recognizing the long-term potential of the Avalanche ecosystem. However, the random RSI is in the overbought zone, indicating that there may be a price adjustment in the short term.