AVAX Poised for 21% Surge on Breakout Above $21, But Daily Close Is Critical
23.04.2025 10:56
Avalanche's native token AVAX could rally by 21% to reach $25.15 if it manages to close a daily candle above the $21 level, according to current technical analysis. After enduring a sharp price decline of over 70%, the asset is now showing signs of a potential turnaround, bolstered by a significant 169% increase in large transaction volumes, which suggests growing interest from whales and institutional investors. Technical indicators reveal that AVAX is breaking out of a descending channel and may form a bullish cup and handle pattern, reinforcing the possibility of an upward move. Despite trading below the 200 EMA, the RSI is near 56, which leaves room for bullish momentum. However, the bullish scenario hinges on the asset cementing the $21 level; failing to do so could negate the potential rally. Overall, the analysis reflects a cautious optimism among traders, as both technical patterns and increased trading volumes indicate a promising setup for AVAX if the critical price level is sustained.
The news casts a bullish light on AVAX, underlined by strong technical signals and substantial whale activity. The prospect of a 21% price increase, if the asset closes above $21, reflects growing market confidence even after a drastic previous decline. Short-term upward pressure is anticipated as traders wait for confirmation of the breakout, while long-term gains may follow if bullish patterns, such as the cup and handle, continue to develop. However, a failure to secure the necessary daily close could reverse the sentiment, highlighting the immediate sensitivity of the asset's price movement to technical benchmarks.