- AVAX whale activity surged by over 80% in 24 hours.
- The altcoin technical indicators suggested a fading bearish momentum.
Avalanche [AVAX] is making bullish strides recently, with its activity surging by over 80% in the last 24 hours, according to the IntoTheBlock reports.
The bullish sentiment is backed by the altcoin’s rising trading activity, as evident from its increasing active addresses. Is this the start of a bullish reversal for AVAX?
AVAX showing signs of recovery?
At the same time, AVAX’s latest price surge was accompanied by a significant boost in network activity. The active addresses number has grown, which is an indicator of increased interest in the Avalanche network.
This could be attributed to recent on chain developments. For instance, new partnerships or network improvements has flocked investor’s confidence in the ecosystem.
The general altcoin market bias align with the current AVAX developments. Altcoins in general are receiving increased attention, and this may signal a shift in sentiment.
Source: IntoTheBlock
With Bitcoin [BTC] and Ethereum [ETH] becoming stronger, investors may be turning to altcoins like AVAX for higher returns.
Bearish momentum fades
Technically, AVAX was painting a potential bullish reversal structure on the daily chart.
The altcoin’s prices were fluctuating around a key demand zone, a crucial level where in the past historically, buying pressure outweighs selling pressure. This is usually a trend reversal signal.
The declining bearish momentum is a positive sign in itself. Technical indicators like the Relative Strength Index (RSI) and Moving Averages are picking up signs that market dynamics might be changing.
If AVAX can hold onto its present momentum and breach main resistance points, a complete bull reversal might be on the horizon.
Source: TradingView
Is the anticipated breakout finally on cards?
This combination of growing network activity and strengthening technical indicators provided a bullish bias for AVAX.
If AVAX is able to sustain its current trajectory, it can attract even more traders and investors, helping to further drive its growth.
The question will be whether it will be able to stay above significant support levels and prolong this momentum.
