AVAX’s 25% price jump: Is the bullish momentum sustainable?

  • The AVAX price jumped 25% in 48 hours after breaking out of a bullish flag pattern.
  • Metrics indicate reduced large transactions and a declining whale-to-retail ratio.

Avalanche [AVAX] has been on a wild ride lately. This has taken crypto investors attention by storm. Let’s break down what’s happening and where it might go from here.

Price action heats up

AVAX broke free from a bullish flag pattern on 29th June, signaling the start of a strong upward move. This breakout fueled a massive 25% price surge in just 48 hours to $27.70, leaving many long position investors scrambling to catch up.

After such a quick jump, AVAX is now taking a breather. The price pulled back to around $25 level, which used to be a tough bullish flag resistance .

At press time, this same level was acting as support, showing how quickly things can change in crypto.

In the past 24 hours, we have seen a small 2.24% dip to the current price of $26.24. This could push AVAX to test the next support at $24.49. How AVAX behaves at this price will give us clues about where it is headed next.

AVAXUSD 2024 07 07 15 06 45 9adba

Source: Tradingview

What is happening behind the scenes for AVAX?

While the price chart looks bullish, on-chain data tells a more complicated story. AMBCrypto’s analysis of the IntoTheBlock data indicates that big transactions on AVAX have dropped by over 45%. This could mean whales are less active right now.

Hyblock Capital data shows the whale-to-retail ratio at 35.16. In simple terms, this suggests regular traders are getting more involved compared to the big players.

whale to retail ratiowhale to retail ratio

Source: Hyblock

Looking at Coinglass’s liquidity heatmap data, we see a lot of sell orders stacked up at higher prices. This could make it harder for AVAX to push much higher without some serious buying pressure.

Binance AVAX USDT Liquidation Heatmap24 hour 2024 07 07 15 09 10Binance AVAX USDT Liquidation Heatmap24 hour 2024 07 07 15 09 10

Source: Coinglass

What’s next for AVAX?

AVAX is at a crossroads. The recent price jump shows strong momentum, but it is now facing some tough resistance levels. 

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The key support level at $24.49 will be important on the next AVAX move. If it breaks, we could see prices fall further. However, if AVAX can stay above $25 and attract more buyers, it might push towards the next big resistance around $29.22.

The drop in whale activity is a bit concerning, but more retail traders joining in could help support the price.


Next: Binance’s Ethereum, Bitcoin reserves up in July – Here’s why this is important

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