AVAX Price Surges by 25 Can Bullish Momentum Persist

Coinworld.com reports:
AVAX price has risen by 25% after breaking through the bull market signal in the past 48 hours. The indicators show a decrease in large transactions and a decrease in the ratio of whales to retail investors.
Avalanche (AVAX) has been on a wild ride recently, attracting significant attention from cryptocurrency investors. Let’s analyze what is happening and where it may be headed.
Price Trend Heating Up
AVAX broke free from the flag pattern on June 29, signaling the start of a strong uptrend. This breakthrough propelled the price to surge by 25% within just 48 hours, reaching $27.70, causing many bullish investors to rush in.
After such a rapid surge, AVAX is now taking a breather. The price has retraced to around $25, which used to be a tough resistance level.
At the time of writing, this level has acted as support, indicating how quickly the cryptocurrency landscape can change.
In the past 24 hours, we have seen a slight decline of 2.24% in the price, currently at $26.24. This could prompt AVAX to test the next support at $24.49. The performance of AVAX at this price level will provide clues for the next move.
What’s Happening Behind AVAX?
While the price chart looks optimistic, on-chain data tells a more complex story. An analysis of IntoTheBlock data by AMBCrypto reveals that large transactions on AVAX have decreased by over 45%. This could indicate that whales are now less active.
Data from Hyblock Capital shows a ratio of 35.16 between whales and retail traders. In simple terms, this suggests greater participation from ordinary traders compared to the big players.
Looking at the liquidity heatmap data from Coinglass, we can see many sell orders stacking up at higher prices. This could make it more difficult for AVAX to rally without significant buying pressure.
What’s Next for AVAX?
AVAX is at a crossroads. The recent price surge shows strong momentum but is now facing some formidable resistance.
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The crucial support level at $24.49 is crucial for AVAX’s next move. If it breaks, we may see further price decline. However, if AVAX manages to stay above $25 and attract more buyers, it could face the next major resistance around $29.22.
The decrease in whale activity is somewhat concerning, but more retail traders joining in could help support the price.