Recent data from IntoTheBlock indicates a substantial increase in whale activity within the Avalanche (AVAX) ecosystem. Large transactions involving AVAX have surged by an impressive 98% at the time of writing.
Over the past 24 hours, major players in the market have traded a total of $226.19 million worth of AVAX. Despite the coin’s ongoing price struggles, significant investors are displaying growing interest in AVAX.
While this surge in whale transactions has not yet led to significant changes in overall trading activity, altcoin prices are currently experiencing bullish momentum.
Source: IntoTheBlock
Decrease in AVAX Active Addresses
Interestingly, the spike in whale activities has not resulted in a proportional increase in active addresses. According to IntoTheBlock, the number of active addresses has actually decreased. This suggests that while large investors are making significant moves, smaller traders or retail investors remain cautious.
Market participants could be waiting for a clear market signal before re-entering the market.
Source: IntoTheBlock
Bullish Sentiment from Liquidation Data
Coinglass data reveals a bullish sentiment surrounding AVAX, with approximately $23 million worth of the altcoin currently at risk of liquidation if the asset’s price falls to $31.
This data suggests that traders anticipate short-term price increases for AVAX, indicating a strong bullish sentiment in the market.
Additional evidence supporting a potential price recovery in AVAX following the recent dip can be observed from the liquidation pool.
Source: Coinglass
Testing Critical Support Levels for AVAX Price
The current price of AVAX is undergoing a crucial test of a key support level at $25.13. After experiencing a noteworthy 22% decline over the past week, the altcoin is showing signs of building bullish momentum.
The upcoming days will be critical for AVAX, as the coin’s price must maintain this level; otherwise, it could continue to decline. However, a successful hold at this support level may increase the likelihood of a reversal.
Could Whale Activity Drive a Price Recovery?
Despite the recent surge in whale activity, AVAX’s price action has remained relatively subdued in the last 24 hours.
While large transactions may potentially drive AVAX’s price higher in the near future, sustained price recovery will likely require more than just increased whale activity.
All eyes are currently on whether the price can reach the $31 level, where significant liquidation pools are anticipated to come into play.