[Avalanche (AVAX) major players remain stable amid rising prices]
AVAX is recovering in value after a prolonged period of decline. AVAX's value fell to an eight-month low of $24.45 on July 3 before rebounding to post its latest gains. AVAX has grown nearly 10% in value over the past week, but net traffic from major players has dropped significantly. According to data from IntoTheBlock, net traffic to large accounts fell by 1.43% during this period and by more than 40% in the past 30 days.
Large holders are addresses holding more than 0.1% of the circulating supply. Net flow by large investors evaluates the difference between the amount of coins purchased and the amount of coins sold by these investors. When the net flow of large accounts surges, it indicates that whale addresses are buying, which is a bullish signal. On the contrary, when it falls, it means these investors are selling, which is a bearish signal and indicates possible selling pressure and risk of price decline.
The selling action by whales may be due to bearish sentiment on AVAX despite the rally over the past week. Weighted sentiment for AVAX has been negative over the past seven days and currently stands at -0.48, according to Santiment. This indicator tracks the overall market sentiment towards an asset, and when it returns to a negative value, the market for the asset is flooded with negative sentiment and its price is expected to fall.
Looking at some of AVAX's key technical indicators, the potential for a sustained rally exists. For example, its Aroon indicator confirms that the current uptrend is strong, with the Aroon ascending line sitting at 92.86%. When the Aroon ascending line is close to 100, it indicates that the uptrend is strong and the recent high is relatively close.
Additionally, AVAX’s Moving Average Convergence/Divergence (MACD) shows buying activity outweighing selling pressure in the market. The coin’s MACD line (blue) is above the signal line (orange) and heading towards the zero line. When an asset's MACD indicator is set up so that its short-term momentum is higher than its long-term momentum, it indicates an uptrend and is a bullish signal.
If this trend continues, AVAX will trade at $32.09. If demand decreases and selling pressure increases, the price will drop to $21.80.
