Over the past month, Avalanche [AVAX] has experienced significant growth, increasing by 93.58%. Despite this surge, the token has only seen a modest 3.77% gain in the last 24 hours, indicating a slowdown in momentum.
An analysis conducted by CryptoCrypto suggests that AVAX has yet to establish a definitive upward trend.
The activity of whales and other crucial factors will likely play a pivotal role in determining whether the asset will regain its momentum and potentially reach the $65 threshold.
Upsurge in AVAX Acquisitions
AVAX has witnessed a notable increase in its average transaction size, reaching $3,687.7 in the past 24 hours and maintaining a seven-day average of $2,935.71.
This trend indicates that traders are engaging in larger AVAX transactions, suggesting a rising demand that could push the asset’s value higher and trigger a price surge.
The average transaction size this week has been the highest since early November, specifically spiking on December 8th, coinciding with continuous price growth.
Interestingly, this surge in transaction value occurred despite a marginal decrease of 1.23% in active addresses transacting AVAX.
Traditionally, a reduction in active addresses is associated with a price decline; however, AVAX has deviated from this norm.
Further analysis by CryptoCrypto has shed light on the significant role of whales, indicating their influence on AVAX’s recent price movements.
Sustained Presence of Whales
Recent data from IntoTheBlock reveals a 0.25% increase in whale activity within the AVAX market over the last 24 hours, underscoring their ongoing impact.
Whales are identified as addresses holding at least 1% of an asset’s total supply, with their actions often shaping market trends significantly. Presently, 10 whale addresses collectively control 27.38% of the total AVAX supply.
These addresses are segmented into high-activity and low-activity categories, both crucial in sustaining AVAX’s value despite waning interest from other market participants.
Together, these addresses possess 27.38 million AVAX, marking a 12.44% increase over the past week amidst a slight decrease in general market activity.
The divergence between whale engagement and broader market participation, alongside the ensuing price surge, suggests that whales are entering the market to accumulate more AVAX for long-term holdings, aligning with the recent price upsurge.
Possibility of AVAX Reaching $65
Currently, 81% of AVAX holders are “in the money,” indicating profitability compared to their entry points, while only 15% are “out of the money,” experiencing a loss.
This notable contrast favors bullish sentiment, as a predominantly profitable market often spurs additional buying activity.
Whale actions combined with growing market interest could amplify this trend, potentially propelling the token beyond its next resistance level found between $54 and $80, with $65 as a key target.
Should the current momentum persist and a notable proportion of “in the money” addresses continue to accumulate, AVAX might not only exceed the $65 milestone but also trade above it.