Over the past 48 hours, Avalanche [AVAX] experienced a significant 24% increase in its price following a bounce-back from the $22 mark.
Currently, the altcoin is testing a crucial previous level of symmetrical triangle support around $28.
If this technical pattern remains intact, there is a possibility that the support level could transform into resistance, potentially impeding the bullish momentum of the altcoin.
Positive Market Sentiment for AVAX
An in-depth analysis of the on-chain metrics by CryptoCrypto unveiled some positive indicators. At the time of writing, there was a 49% surge in whale activity and a 14% uptick in trading volume, according to IntoTheBlock.
This uptrend hints that significant market participants and active traders are actively involved with AVAX, hinting at a favorable market sentiment.
Anticipated Short-Term Correction
The data from the liquidation heatmap added a layer of complexity to the current scenario.
An examination of Coinglass’ data by CryptoCrypto revealed a substantial liquidation pool of 563K AVAX tokens at the $26.73 level, suggesting a potential short-term correction on the horizon.
Depending on the market’s response and the impact of whale activities and trading volumes, this level could either offer support or resistance.
In the context of Avalanche, there has been an influx of whales into the market, evident from the increased number of large transactions.
AVAX might undergo a brief correction before a projected rally following the utilization of upcoming liquidations.
Future Prospects for AVAX
As AVAX challenges the previous symmetrical triangle support level, investors will be closely monitoring the market’s reaction.
If the support successfully transitions into a new resistance level, the altcoin could sustain its bullish momentum and extend its price surge further.
However, a hold at the resistance level of $28.16 might lead to a short-term correction in the market.