Avalanche (AVAX), one of the leading cryptocurrencies, has been witnessing significant price action and activity by large-scale investors, commonly known as “whales,” in recent times.
In the last week, the price of AVAX has gone up by about 10% and is currently at around $19.65. Within the last 24 hours, the price has gone up by about 7%.
VanEck has introduced an AVAX-centric exchange-traded fund (ETF), one that can possibly entice institutional investors and facilitate mass adoption. To add further bullish sentiment, World Liberty Finance (WLFI), a U.S. politically connected company, has bought $2 million in AVAX, which reflects trust in the cryptocurrency’s long-term future.
Large whales have dramatically built up their holdings of AVAX. Whales have purchased 4.7 million AVAX in the past two days, valued at close to $90 million.
There wasn’t much whale activity on March 16 since AVAX’s netflow of big holdings was less than 290,000. The figure has increased dramatically to 5 million so far, indicating a strong accumulation. Large purchases by whales typically signal strong bullishness and tend to push prices higher.
Aside from whale stacking, major indicators point toward sustained upside in AVAX. The funding rate is now positive, signaling traders are placing bets on price appreciation. AVAX has also established a falling wedge pattern, a technical configuration that tends to produce bullish breakouts.
The MACD has turned positive, indicating good momentum, and the Chaikin Money Flow (CMF) has also moved above zero, indicating more buying pressure.
Strong buying pressure coupled with positive technical indications, AVAX may now reach $25, which corresponds to the 0.786 Fibonacci level. If the momentum keeps building up, the price may even head towards $30.
Yet if selling pressure gathers strength, AVAX could slide to $15.40 instead. All signs currently suggest that there will be a breakout, so AVAX is among the strongest-performing top-20 coins in the market.
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