The price of Avalanche [AVAX] has dropped by 14.05% in the last 24 hours, with the weekly decline expanding to 29.12%. Despite this bearish trend, a shift in market sentiment may be imminent.
According to AMBCrypto, whale activity seems to be intensifying, which could push AVAX into a new market phase.
The increase in the number of addresses indicates growing market interest.
With both active addresses (AA) and new addresses (NA) surging simultaneously, interest in AVAX is on the rise.
In the past seven days, AA increased by 44.50%, suggesting an uptick in trading volume among existing participants. Meanwhile, NA surged by 142.90%, indicating that the adoption rate of AVAX is continuously rising, possibly due to new market entrants finding the asset attractive.
The combination of increased market participation and a surge in new addresses is a bullish indicator, suggesting that the market may present an upward trend.
According to AMBCrypto, large holders or 'whales' may be driving this growth by accumulating millions of dollars worth of AVAX, leading to a surge in activity.
Whales are hoarding AVAX.
The purchase volume of AVAX across various address categories has significantly increased, especially for addresses holding between $1 million and $10 million of AVAX in the past 7 days.
During this period, addresses in this range grew by 24.08%, indicating that whales are gradually entering the market.
Other categories have also observed similar growth trends: addresses holding between $100,000 and $1 million grew by 20.13%, while addresses holding between $10,000 and $100,000 increased by 23.56%.
The collective accumulation by large traders indicates a positive outlook. When the market sentiment of these key participants aligns, it typically suggests a healthy buying trend, potentially driving token prices higher from current levels.
The supply of AVAX is gradually decreasing.
The currency supply available in the market is steadily decreasing, with net outflows from exchanges significantly declining.
In just the past 24 hours, AVAX worth $9.61 million has been withdrawn from exchanges, bringing its weekly net outflow to $69.21 million—marking the highest level since April 4, 2022.
Meanwhile, the weighted funding rate of open contracts has returned to positive territory, indicating that seasoned traders are preparing for a potential rebound.
If market sentiment decisively turns bullish, AVAX could experience a significant price surge, recovering from weeks of declines.