AVAX Under Heavy Pressure: What Will It Do?

The popular layer-1 blockchain Avalanche ($AVAX ) could potentially see a short-term rally if trading activity increases.

While the crypto market has been active in recent days, it has been noteworthy that major altcoins have faced selling pressure. The failure of the leading altcoin Ether ($ETH ) to maintain its value above $4,000 has been one of the main reasons for the outflows.

One of the major altcoins affected by the turbulent market conditions was AVAX. According to on-chain data, the recent significant sales of whales pushed AVAX into the potential support zone.

AMBCrypto reported that the bull-bear ratio in AVAX indicates that the decline will end soon.

Avalanche (AVAX), which recorded a sharp decline last week, has started to recover in recent days. AVAX gained nearly 3 percent in the last 24 hours.

According to IntoTheBlock data, the support level at $41 triggered the popular altcoin’s bullish trend. Buying from the said level contributed to the 25 percent increase. The analysis reported that the $41 support was held by more than 150,000 wallets holding 8.93 million AVAX.

The analysis included the following statements; “Such levels play an important role in price movements as they attract significant buying interest. Buyers often see these levels as an opportunity to buy the asset at a good price.”

Recent market movements showed that AVAX formed two bullish candles after falling to $41.32, and the price has since risen to $51.

According to on-chain data, whales sold heavily during the period when AVAX fell to $41. The analysis stated that whales started selling on December 9, and during this time, 3.53 million #AVAX worth $161 million was sold.

AVAX’s recent drop to the $41 support level was driven by large holders, known as whales, who collectively own 1% of the token’s supply and have been selling heavily.

“Whales are selling while retail investors are buying. This change of ownership has allowed AVAX to regain momentum,” the analysis noted.

#BitcoinKeyZone #MarketMajorComeback