- AVAX traded within a bullish pattern, with technical indicators suggesting a market rally could happen soon.
- Large investors have joined the movement and have begun purchasing the token.
Avalanche [AVAX] has had a rocky past month, with the asset declining 27.97%. However, there is potential for a major market boom as sentiment begins to change. In the past 24 hours, it gained a minor 2.05%.
Investor sentiment is turning bullish, along with other key metrics like the formation of a golden cross, which could aid the potential market rally, according to AMBCrypto’s research.
Bullish formation strengthens
On the chart, AVAX has formed a bullish structural pattern that could lead the asset to establish a new high. This bullish triangle pattern consists of a horizontal support line and a descending resistance line.
At the moment, AVAX has taken the first bullish leg up, reacting off the support level of the pattern at $24.53. The price is expected to move up from here, breaching the descending resistance line.
Source: TradingView
There are two major profit targets following the breach: the short-term target at $35.52 and the long-term target at $53.95, representing an approximate rally of 103% from its current price point.
However, the price could further accumulate at its current levels, trading back and forth within the support range between $22.87 and $24.53 before finally making its upward rally.
A slight decline and major rally in play
The technical indicators, Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), have hinted at the possible price movement and direction.
The RSI is currently in the bearish phase, with a reading of 34.21, and is heading toward a support level at 32.07.
Thus, AVAX could drop lower until it reaches the support level, which would provide a rebound and drive the price higher.
Source: TradingView
The bullish sentiment in the market has been confirmed with the formation of the golden cross, which occurs when the blue MACD line crosses over the orange signal line.
At press time, data showed the MACD line at 3.03 and the signal line at 3.06.
If the golden cross pattern remains intact, it indicates that the current bullish structure is still in play and the declining RSI is just a retracement.
AVAX whales step in
Insights from IntoTheBlock suggest ongoing buying activity from whales in the market. In the past 24 hours, large-volume transactions have reached a seven-day high, totaling 569.
Whales, also known as large investors who control a notable supply of the asset, are accumulating AVAX. When such a surge occurs alongside a price increase, it indicates that the majority of whales are buying.
Source: IntoTheBlock
During this period, whales traded a total of 10.77 million AVAX worth $276.82 million. In the coming trading sessions, if this trading volume increases along with price, it would suggest continued whale accumulation.
