The Avalanche (AVAX) cryptocurrency has witnessed a significant surge, crossing the $50 threshold with a 13.13% increase in the past day. This milestone achievement was backed by a substantial rise in transaction volumes involving large trades, suggesting strong market activity around the digital asset.
Impact of High-Value Transactions
Cryptocurrency analysts observed a record high in trading volumes for AVAX, hitting $329 million on March 11th, the largest since the previous December. This movement reflects increased interest and participation from substantial investors, which could potentially lead to a further doubling in AVAX’s price if current trends persist.
Technical Indicators and Price Movement
AVAX attempted to breach the $57 resistance on March 12th, according to a 4-hour technical chart, but the effort fell short. Bulls are currently pushing to surpass this resistance level, which could propel AVAX towards $59.92. Conversely, a rejection could see the price retract to the $47.53 support level. Notably, the relative strength index previously indicated an overbought condition, which correlated with a subsequent price dip.
The exponential moving averages provide a more optimistic outlook, with the 20 EMA overtaking the 50 EMA, hinting that the upward trend might continue. As long as AVAX maintains above $45.89, prospects for recovery look promising. Positive funding rates further suggest that the cryptocurrency might eventually stabilize above the resistance level. High-risk investments have been observed above the $57 mark, pointing to investor confidence in the asset’s growth potential.
However, the market also shows signs of possible reversal, with struggles to maintain an upward trajectory. A change in current conditions could lead to AVAX sliding below the $50 level. Despite a slight downward trend indicated by the cumulative liquidation levels delta, the potential for AVAX to hit triple-digit values in the future is not ruled out.
