TLDR
- AVAX could potentially rise by 21% to reach $25.15 if it closes a daily candle above the $21 mark
- Large transaction volume jumped by 169%, indicating strong whale and institutional interest
- AVAX is trading around $20-21, showing bullish patterns on both weekly and daily timeframes
- Technical analysis shows AVAX breaking out of a descending channel pattern and forming a cup and handle pattern
- Price coiling suggests accumulation and potential breakout despite recent low trading volume
Avalanche (AVAX) appears ready for an upside rally after experiencing a price decline of over 70%. The altcoin’s price movement, coupled with increased interest from traders and investors, suggests a bullish outlook if certain conditions are met.
At press time, AVAX is trading near $20.05, with a 2.50% decrease over the past 24 hours. Despite this short-term dip, the overall trading volume has increased by 22%, showing heightened market participation.
The crypto could potentially rise by 21% to reach the $25.15 level, but this bullish projection depends on AVAX closing a daily candle above the crucial $21 mark.
Whale Activity Surges
On-chain data reveals substantial institutional interest in AVAX. Analytics firm IntoTheBlock reported that participation from whales and large investors has skyrocketed, resulting in a 169% jump in large transaction volume.
This surge coincides with AVAX breaking out from a bullish price action pattern, which many analysts consider a positive signal.
The increase in trading activity suggests strong interest from major market players, potentially setting the stage for upward price movement if the breakout pattern continues to develop.
Everyone’s watching $BTC… but $AVAX is silently coiling.
Volume down. Structure up.
A dip into the box and it’s go time.
Eyes on $23.46 first, then $25.12. pic.twitter.com/MgV4AjE9eU
— RJT. WAGMI (@RJT_WAGMI) April 22, 2025
In the last week alone, AVAX price increased by 11.68%, bringing its market cap to approximately $9.03 billion with a 24-hour trading volume of around $406 million.
Technical Patterns Show Promise
Technical analysis indicates several bullish factors for AVAX across both lower and higher time frames.
On the weekly chart, AVAX appears to be moving within a descending channel pattern. It has successfully retested the lower boundary by forming a strong bullish engulfing candlestick pattern.
The daily timeframe shows even more promise. AVAX has broken out of a descending channel pattern and now stands on the verge of breaking out of a bullish cup and handle pattern.
This recent breakout above a strong bearish hurdle, combined with the potential cup and handle formation, signals strong upside potential.
Price Targets and Resistance Levels
The daily chart reveals AVAX trading near the neckline of a bullish pattern, representing a critical make-or-break point for the asset.
If AVAX breaks out and closes above the $21 level, analysts project it could rally by 21% to reach $25.15. Should upside momentum continue, it might further increase by another 25%, potentially reaching $31.40 in the coming days.
Key resistance levels to watch include $23.46 and $25.12, which have served as turning points in AVAX’s recent price history.
Currently, AVAX trades below the 200 Exponential Moving Average (EMA), typically indicating a downtrend with weak momentum.
However, its Relative Strength Index (RSI) sits near 56, suggesting the asset has sufficient room for an upside rally. Having crossed the neutral zone, the RSI signals potential for further bullish momentum.
The current price action resembles a coiling pattern, where the market builds pressure in a tight range before a breakout. This compression and low trading volume likely suggest a period of accumulation rather than market weakness.
The broader crypto market shift from downtrend to recovery phase has benefited AVAX, with Bitcoin’s recent price increases helping altcoins bounce back after a period of instability.
As investors return to the market and trading volume increases, AVAX stands to gain if the overall bullish trend persists.
The quiet consolidation period for AVAX presents an opportunity for altcoin investors, especially as Bitcoin continues to dominate market attention.
Chart analysis shows an important support range from which AVAX should bounce back. If this support holds and buying pressure increases, the resistance levels at $23.46 and $25.12 become the next targets to watch.
For now, AVAX’s bullish thesis remains valid only if the asset closes a daily candle above the critical $21 level. Failure to maintain this level could invalidate the rally projection.
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