- AVAX liquidation heatmap indicates a significant pool of $4 million at the $25 level.
Whale activity and holding distribution could boost the price movement.
As a seasoned analyst with years of experience navigating the volatile cryptocurrency market, I find myself cautiously bearish about Avalanche [AVAX] at this juncture. The $4 million liquidation pool at the $25 level, as indicated by Coinglass’ liquidation heatmap, is a significant red flag that could potentially trigger an extensive sell-off if the market behaves as expected.
A look at AVAX‘s potential trend suggested a possible drop towards around $25. Data from Coinglass’ liquidation heatmap showed a liquidation pool worth approximately $4 million at that price level.
A large accumulation of liquid assets indicates that the current price point might be the market’s preferred direction, potentially leading to a widespread sell-off or liquidation event.
If the market follows the anticipated pattern, it should validate this trend over the coming days as traders concentrate on this particular point.
How holding distribution may speed up the drop
Based on distribution data from IntoTheBlock, it appears that AVAX‘s large investors (whales) could potentially make more moves to decrease the price.
These major cryptocurrency investors have been consistently purchasing additional AVAX stocks. If they were to sell these holdings at a price of $25, it could significantly intensify the existing negative mood among investors who are already bearish.
As an analyst, I’ve noticed a significant clustering of key transactions at these specific levels, which could potentially indicate instability. However, this concentration might also be perfectly harmonious with the gravitational pull exerted by the liquidation pool in this context.
Approximately a 7% increase in investors holding over $100k in AVAX could significantly influence its price trend within the market. Meanwhile, the Coinglass 24-hour short ratio sits at 0.90, suggesting that the market is close to a balanced state.
In my perspective as a crypto investor, the gradually decreasing ratio seems to suggest a buildup of bearish sentiments in the near future. As prices continue to dip, it appears that we’re heading towards filling up the liquidation pools.
AVAX bearish signals
Enhancing the possibility of a pullback, the random RSI (Relative Strength Index) has just entered a bearish phase. This additional concern is significant because it frequently predicts downward trends, especially when combined with liquidation maps and whale activity at this time.
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In simpler terms, the mix of data from the liquidation map, whale behavior, and specialized tools like Stochastic RSI suggests a potentially negative short-term trend for AVAX.
Given these bearish influences, it’s more likely that the market may experience a pullback towards the $25 mark before it becomes clear where the overall trend is heading.
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2024-08-27 12:07