In the preceding 24 hours, the price of Avalanche’s AVAX token has plummeted by 14.05%, further expanding its weekly losses to 29.12%. Despite this downward trajectory, there are indications that a change in market sentiment might be on the horizon.
According to CryptoCrypto, there seems to be an uptick in whale activity surrounding AVAX, potentially setting the stage for a market shift.
Rising Addresses Reflect Heightened Market Interest
The interest in AVAX within the market is on the rise, evident through the simultaneous surge in Active Addresses (AA) and New Addresses (NA).
Over the past week, AA surged by 44.50%, indicating increased transactions by existing users. In parallel, NA witnessed a notable spike of 142.90%, showcasing a growing adoption of AVAX, possibly fueled by new investors finding the asset attractive.
This surge in market participation alongside the influx of new addresses serves as a bullish signal, hinting at a potential upward trend in the market.
According to CryptoCrypto, the accumulation of significant amounts of AVAX by large holders or whales may be propelling this growth, contributing to the surge in activity.
Accumulation Trend Among Large Holders
There has been a noticeable increase in AVAX accumulation across various address categories, particularly among those holding between $1 million and $10 million worth of AVAX over the past week.
Within this period, addresses in this range grew by 24.08%, signaling a gradual entry of whales into the market.
Similar growth patterns were observed in other categories: addresses with holdings between $100,000 and $1 million in AVAX saw a 20.13% rise, while those with balances between $10,000 and $100,000 noted a 23.56% increase.
The collective accumulation by prominent traders indicates a positive outlook. When market sentiment aligns among these major players, it often signifies a robust buying trend that could potentially elevate the coin’s value above its current levels.
Gradual Decline in AVAX Supply
The available supply of AVAX in the market is steadily dwindling, with significant reductions in exchange net outflows.
In the recent 24 hours, a withdrawal of $9.61 million worth of AVAX from exchanges occurred, bringing the weekly net outflow to $69.21 million—the highest level since April 4, 2022.
Simultaneously, the Open Interest Weighted Funding Rate has re-entered positive territory, indicating that sophisticated traders are positioning for a potential upswing.
Should the market sentiment decisively shift towards a bullish stance, AVAX could witness a significant surge in value, recovering from its prolonged decline over the past weeks.