AVAX Poised for 21% Surge on Breakout Above $21, But Daily Close Is Critical

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.