AVAX whale activity spikes, hinting at a potential price rebound.
- AVAX whale transactions surged by 98% to $226.19M, signaling strong market interest. Despite no significant change in its active address decline, liquidation data suggests potential bullish momentum to $31 price level.
Avalanche [AVAX] has seen a significant rise in whale activity, according to data from IntoTheBlock. As of this writing, its large transactions have surged by an impressive 98%.
The market’s big players transacted $226.19 million worth of Avalanche over the last 24 hours alone. Large investors seem to be growing increasingly interested in AVAX, despite the coin’s price struggles.
However, this surge has not triggered any significant change in the trading activity, but the altcoin prices are currently gaining bullish momentum.
Source: IntoTheBlock
AVAX active addresses dip
Interestingly, this spike in whale activities does not really translate to an increase in active addresses.
According to IntoTheBlock, the number of active addresses has dropped. This suggests that large investors are making big moves, but the smaller traders or the retail investors are still skeptical.
The market participants could be just waiting for an explicit signal of the market to jump back in.
Source: IntoTheBlock
Liquidation data indicates a bullish bias
Coinglass data points to a bullish bias for AVAX, with approximately $23 million worth of the altcoin currently at risk of liquidation should the asset’s price hit $31.
This indicates a strong bullish sentiment from traders, who expect short-term increases in the price of AVAX.
Another piece of evidence that the market is up for some price recovery after the recent dip by AVAX could be seen from the liquidation pool.
Source: Coinglass
AVAX price is testing a critical support level
The current price of the AVAX is testing a key support level at $25.13. After recording a significant 22% decline in the past week, the altcoin is building up bullish momentum.
The coming few days will be quite critical for the AVAX, as the altcoin price has to stick to this level, or else it might further slide down.
However, if the support holds, all will not be lost as chances of a successful reversal will increase.
Source: Tradingview
Will whale activity drive a price rebound?
While whale activity is spiking, the price action of AVAX has been pretty muted in the last 24 hours.
Large transactions could well push AVAX’s price upward soon, but from their current standing, more than whale activity needs to come through to fuel a lasting price recovery.
Currently all eyes are on whether the price can push towards the $31 level, where significant liquidation pools are expected to be leveraged.
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