In the last 24 hours, the price of Avalanche (AVAX) has increased by 13.13%, surpassing the $50 milestone. However, the altcoin value could not reach this point without certain fundamental factors. According to IntoTheBlock, the increase in large transaction volumes was influential in the price rise.
Significant Trading Volumes in AVAX
The cryptocurrency analytics platform mentioned in a post that the volume reached $329 million on March 11th. It also stated that this was the highest amount the cryptocurrency had reached since December 2023. Although large volumes do not guarantee a price increase, the situation was different for AVAX. Not only did the activities of large holders increase, but AVAX also experienced buying pressure rather than selling. If this continues in the near term, the cryptocurrency’s price could potentially double.
According to a 4-hour analysis, AVAX first reached $57 on March 12th. However, the attempt to break the key resistance was unsuccessful. At the time of writing, the bulls were trying to retest the region. A successful close above the region could send AVAX to $59.92. However, if rejected again, the token’s price could fall to the $47.53 support. Previously, the relative strength index (RSI) had hit the overbought region. When the region was reached, the reading dropped, causing the price of AVAX to fall.
AVAX Price Analysis
If the oscillator continues to fall, AVAX could lose the $50 mark. However, the exponential moving average (EMA) also showed other signals. For example, the 20 EMA had crossed above the 50 EMA. Such a position could mean that the uptrend is not over. As long as the price does not fall below $45.89, AVAX could recover. Additionally, the funding rate was positive, indicating that the price could lock onto the resistance and breach the region. In terms of liquidation levels, investors were noticed to have an appetite for high-risk positions above $57.
Such market conditions could signal a potential reversal, as the price may struggle to create an uptrend. If the mentioned situation does not change, the price of AVAX could fall below $50. Also, the cumulative liquidation levels delta (CLLD) was positive, leading to a slight downward trend. In a situation showing a significant downward trend, the price of the cryptocurrency could fall to $45. However, this does not necessarily mean that the value cannot reach triple digits.
