Avalanche [AVAX] has extended its three-day bullish streak after bouncing from the pennant support.
The recovery occurred as activity across Avalanche’s real-world asset (RWA) ecosystem accelerated sharply. At the same time, whale orders were surging across both spot and futures markets, strengthening the case for a potential breakout from the current consolidation phase.
With a major liquidity cluster around $7.20, could AVAX bulls have their next target in sight?
AVAX rebounds from pennant support
AVAX price action has been on an uptrend for three consecutive days since it was given a rejection at the pennant support at around $6.14.
Despite the recent recorded gains, the recovery still keeps the token’s price action within a broader consolidation structure, meaning buyers now need to overcome the pattern’s upper resistance to confirm a breakout.
A decisive move above that boundary could strengthen the bullish setup and open the way toward higher price levels.
Avalanche RWA activity accelerates
At the same time, Avalanche RWA is creating an excellent fundamental setup for the recovery.
According to the foundation’s recent reports, the 30-day RWA transaction volume on Avalanche was recorded at $365.29 million, marking a massive increase of 360.15% from the past month. This is suggestive of substantial flows of money within tokenized real-world assets on the Avalanche network.
Avalanche’s surging Real-World Asset (RWA) transaction volume may generate steady transaction fee revenue and scale the network utility in the near future. The chain’s revenue has already reacted, with the network recording a significant surge from its July lowest values this month.
Should this continue, it will be an additional factor to the Avalanche bullish technical.
Whales increase market activity
That’s not all; large holder activity is also strengthening across AVAX markets.
According to the recent Average Order Size data, the network’s whale orders are increasing at the current trading price in both spot and futures markets. This suggests that bigger market players are getting involved at the current price range. Higher whale involvement may enhance price moves when combined with growing buying interest.
This development may provide bulls with the necessary spark to accelerate the current momentum to potentially break past the upper trend line of the pennant consolidation pattern.
Is $7.20 AVAX’s next target?
The next major level for AVAX bulls sits around $7.20, where a liquidity cluster worth approximately $1.13 billion exists.
Usually, big liquidity clusters act as a magnet since most traders and investors align to target the unmitigated liquidity zone. For AVAX bulls, the target at $7.20 will come into focus if there is a confirmed breakout from the pennant.
At present, AVAX is consolidating, although the altcoin has shown a strong recovery recently. Improved RWA participation and increased whale involvement are setting up a good bullish environment; however, a breakout from the pennant is needed to affirm the bias.
Final Summary
- AVAX extends its three-day rally as RWA transfer volume jumps 360% to $365.29 million.
- Rising whale activity and $1.13 billion in liquidity put $7.20 in focus for bulls.
