The Future of AVAX Crypto: Will Whales Maintain Market Dominance?
In a recent turn of events, AVAX cryptocurrency is showing promising signs of a potential surge, hitting new record highs. The pressing question now revolves around whether the market will still be under the control of large holders.
Following a period of struggle marked by notable price drops and lackluster performances in the past week, AVAX has started its road to recovery. Presently, it has gained 13.28% in daily trading, signaling a renewed interest from investors.
Recovery Boosted by Strong Support Levels
The identification of a key support level by IntoTheBlock has played a crucial role in guiding AVAX towards its current upward momentum, stimulating a 24-hour surge. This support level, situated at $41, holds immense significance in driving the altcoin’s bullish trend.
With over 150,000 addresses containing 8.93 million AVAX linked to this level, it has become a focal point for price movements, attracting significant buying interest. Such levels often provide attractive entry points for buyers looking to initiate potential reversals in prices.
Recent market activities have also showcased a positive trend as AVAX, after dropping to $41.32, displayed two bullish candles, leading to a surge to $50.08. This recovery marks an important turnaround post its previous downtrend.
Capitalizing on Whales’ Sell-Offs for Potential Rally
The recent decline in AVAX towards the $41 support level was primarily instigated by whales, significant holders owning up to 1% of the token’s total supply, engaging in extensive selling activities.
Starting on December 9, these sell-offs peaked at 1,450 transactions before drastically reducing to 400 over the last 24 hours. During this phase, 3.53 million AVAX, equivalent to $161.12 million, changed hands, marking a substantial decline from the $1.54 billion traded on December 9.
While whales executed sell orders, retail traders and smaller investors seized the opportunity to buy at higher price levels, helping AVAX regain some lost momentum.
This shift in the market dynamic sets the stage for a potential upsurge. If whales decide to resume accumulating AVAX, it could trigger a significant price hike, propelling the asset to unprecedented levels.
Positive Market Sentiment Supports Bullish Outlook
Recent data from IntoTheBlock has indicated a slightly favorable stance for bulls, with 117 bullish signals compared to 115 bearish signals. This slight edge leans towards sustained bullish momentum.
Furthermore, AVAX has been witnessing steady growth in adoption, with a 30-day average surge of 18.34%. This metric, measuring the influx of new addresses making initial transactions relative to active addresses, reflects an increasing interest from retail investors.
This growing adoption rate has been a driving force behind recent price movements, showcasing heightened involvement from retail participants.
If whales resume their buying activities and critical metrics continue on their current trajectory, AVAX stands poised for a substantial price escalation in the near future.