- Altcoin recently dipped into a key support zone, a move largely attributed to whale investors offloading substantial holdings
- Analysis of the Bull-Bear ratio suggested that the ongoing price decline will be short-lived
As a seasoned researcher who has weathered many market cycles and witnessed numerous bull and bear phases, I find myself optimistic about AVAX‘s prospects. The recent dip to a key support zone at $41 has served as a catalyst for renewed interest in the altcoin, with its 24-hour momentum pushing daily gains to 13.28%.
Following a difficult stretch with significant declines and subpar showings for the last week, AVAX is now on an upward trend. As I write this, it appears that its progress has propelled a 13.28% increase in just one day – Indicating a surge of fresh market enthusiasm.
As an analyst, I’m curious to delve deeper into the longevity of this current surge. Therefore, I’ve taken a closer look at whether Avalanche (AVAX) still holds promise for further growth in the near future.
Support level drives AVAX’s recovery
Lately, a key support level discovered by IntoTheBlock has significantly fueled Avalanche’s (AVAX) price surge, amplifying its 24-hour growth momentum. Remarkably, this support level, specifically at $41, has played a crucial role in AVAX’s positive trend, acting as a significant bullish indicator.
Especially since it encompasses over 150,000 addresses holding 8.93 million AVAX.
These levels significantly impact price fluctuations because they draw substantial buying attention. Buyers frequently view these levels as chances to acquire the asset at advantageous rates, which could spark recovery.
In the latest market scenario, a drop in AVAX’s value to approximately $41.32 led to the formation of two positive candles. Since then, there’s been a significant increase in price up to $50.08, indicating a substantial recovery following its previous fall.
Whales’ sell-offs create opportunities for AVAX rally
As a researcher, I’ve observed a notable decline in AVAX price approaching the $41 support level. This downward trend seems to be instigated by significant token holders, often referred to as ‘whales,’ who control approximately 1% of the total supply. It appears they have been offloading their tokens rather aggressively.
Starting on December 9th, a significant wave of sell-offs commenced, reaching its maximum at 1,450 transactions. However, over the past 24 hours, this number has dropped drastically to only 400. Over this timeframe, approximately $161.12 million worth of AVAX, equivalent to around 3.53 million units, were traded. This represents a substantial decrease from the $1.54 billion in AVAX transactions that took place on December 9th.
As a crypto investor, I’ve noticed an interesting trend recently – while larger players (often referred to as ‘whales’) have been offloading their tokens, smaller retail traders like myself have been jumping in at increasingly higher prices. This reverse dynamic seems to be giving projects like AVAX a fresh breath of momentum.
In simpler terms, the current market situation seems to be favorable for an increase in value. If large investors (often referred to as ‘whales’) start buying more AVAX again, this action might initiate a significant rise in price, potentially taking the value of the asset to unprecedented levels.
Market outlook remains bullish
Ultimately, information from IntoTheBlock indicated a small advantage for buyers over sellers in the market, counting 117 buyers against 115 sellers. This slight discrepancy appears to support continued bullish movement.
Moreover, it’s worth noting that AVAX has experienced consistent growth in usage, showing an average rise of 18.34% over the past 30 days. This figure represents the proportion of new accounts engaging in their initial transactions compared to the total active ones, suggesting a growing curiosity among retail investors.
The increased acceptance has fueled recent changes in prices, indicating a rise in involvement from individual traders.
Should whale investors continue buying and if the key performance indicators keep following their present trajectory, it’s possible that Avalanche (AVAX) prices may experience a substantial increase in the near future.
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2024-12-13 10:15