Over the course of this month, there has been a noticeable slowdown in the whale activity surrounding Avalanche’s native cryptocurrency, AVAX.
The occurrence of substantial transactions that typically have an impact on price movements has markedly decreased, causing AVAX to stabilize below a crucial trendline resistance since February 6th.
The reduced involvement of major market players has raised uncertainties regarding the short-term trajectory of the token. Could this result in a further decline towards the $22 support level?
AVAX Price Stability Below Key Resistance Line
AVAX has been observing a tight consolidation beneath a fundamental trendline resistance that has remained unbroken since the beginning of August, signifying a lack of significant bullish momentum.
Traditionally, notable price actions have ensued following such consolidation phases. Given the drop in whale activity, breaching this resistance level might prove challenging for the token.
Instead, a revisiting of lower support levels, particularly around the $22 mark, appears likely. This level has served as a robust accumulation zone for a considerable duration, potentially amassing enough bullish force to alter the market trend.
Is $22 the Gateway to a Bullish Reversal?
If AVAX struggles to mobilize adequate buying pressure to surpass the trendline resistance, a descent to $22 could be imminent. This level could emerge as a collection point where prominent market players opt to establish long positions.
For AVAX to shift its trajectory, the cryptocurrency must amass a notable bullish drive, and $22 seems to present itself as the nearest springboard for a bullish turnaround.
Despite indications pointing towards a probable decline to $22 under prevailing market conditions, a patient approach is advisable. This zone could function as the turning point for AVAX, where purchasers might seize long positions and propel prices upwards.