AVAX loses 29% in a week: Could THESE factors trigger a price reversal?

Recent data shows a surge in several address metrics, most notably active addresses—a positive signal for AVAX.
Whales might be driving this increase in active addresses, as well as the uptick in USD balances held by large accounts.

As a seasoned crypto investor with a knack for spotting trends, I find the recent developments surrounding Avalanche [AVAX] intriguing. Despite the temporary bearish trend that has caused AVAX to drop by 14.05% in the past 24 hours and 29.12% over the week, the increasing activity across various address categories presents a compelling case for optimism.

Over the last 24 hours, the value of Avalanche [AVAX] has decreased by 14.05%, which also increases its weekly losses to 29.12%. However, a potential change in market sentiment might be on the horizon.

Based on AMBCrypto’s report, it seems that the actions of large investors (whales) are becoming more frequent, potentially setting up Avalanche (AVAX) for a shift into a new market stage.

Growing addresses show increased market interest

The growing enthusiasm for AVAX can be seen as the number of active addresses and new addresses significantly increasing together.

Over the last week, there’s been a significant surge in AA, amounting to a 44.50% increase. This points towards a higher number of transactions from existing participants. On the other hand, NA experienced an impressive jump of 142.90%, hinting at increasing adoption of AVAX. This spike might be due to new market players being attracted to the asset’s appeal.

The increase in activity from more participants in the market and the addition of new accounts points towards a positive trend, implying that the market could potentially rise further.

Based on AMBCrypto’s report, it appears that significant investors, often referred to as ‘whales’, might be fueling this growth by amassing large quantities of AVAX, which could explain the increased level of activity within the network.

Large holders are accumulating AVAX

Over the last week, there’s been a significant increase in the number of AVAX purchases observed across different types of wallet addresses, with a particular focus on individuals who hold between one and ten million dollars’ worth of AVAX.

Over this timeframe, addresses within this specific range experienced a growth of approximately 24.08%, suggesting a gradual increase in whale participation within the market.

In other categories, growth patterns were similar: Accounts containing between $100,000 and $1 million in AVAX experienced a 20.13% rise, whereas those with balances ranging from $10,000 to $100,000 showed a surge of 23.56%.

The build-up of holdings by significant traders indicates a positive forecast for the market. When these influential figures share a common optimistic stance, it often foreshadows a robust purchasing spree, which could cause the coin’s value to escalate above its present prices.

Supply of AVAX Is gradually declining

The amount of the given coin circulating in the market is consistently going down, as there’s a notable decrease in the net outflow from exchanges.

Over the last day, a staggering amount of approximately 9.61 million dollars’ worth of AVAX has been taken out of exchanges. This single-day withdrawal pushed the weekly net withdrawal to an impressive 69.21 million dollars – the highest it’s been since April 4th, 2022.

Meanwhile, the Open Interest Weighted Funding Rate is back in the positive, indicating that experienced traders might be preparing for an upcoming market rise.

Read Avalanche’s [AVAX] Price Prediction 2024–2025

Should the overall market outlook significantly favor optimism, it’s possible that Avalanche (AVAX) might witness a significant price jump, bouncing back from its recent downtrend.

2024-12-21 08:07

Growing addresses show increased market interest

Large holders are accumulating AVAX

Supply of AVAX Is gradually declining

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