Avalanche (AVAX) could regain bullish momentum with increasing market activity, as crypto investors increasingly show interest.
Current data shows a significant increase in active and new addresses, indicating increasing interest and participation in the AVAX ecosystem.
Increased whale activity may be the primary reason for the recent increase in market participation.
AVAX is showing signs of recovery with increasing whale participation and rising active addresses, creating a fertile ground for an uptrend.
Increasing addresses reinforce market interest
Market interest for Avalanche (AVAX) is increasing, with both active addresses (AA) and new addresses (NA) rising significantly. A remarkable 44.50% increase in active addresses has been observed in the past week, indicating increased trading activity among existing users. Additionally, new addresses have seen an impressive 142.90% increase, indicating that more investors are discovering and adopting AVAX. This increased market participation and increase in new addresses is creating a positive atmosphere in the AVAX market, which could point to a possible price increase for AVAX.
The increase in demand is largely due to whales accumulating significant amounts of AVAX, which is increasing activity in the overall market.
Big investors are accumulating AVAX
There is a clear trend that large AVAX investors, or whales, are significantly increasing their holdings. Of particular note are accounts holding between $1 million and $10 million in AVAX; this category has increased by 24.08% in the last week alone. Similar trends were observed across different address ranges; addresses holding between $100,000 and $1 million saw a 20.13% increase, while addresses holding between $10,000 and $100,000 saw a 23.56% increase. The accumulation among these large investors creates a positive outlook for AVAX. The common sentiment among these market participants generally indicates a healthy buying trend, which could lead to a price recovery if market sentiment turns positive.
AVAX supply is decreasing
Another important factor to consider is the decreasing supply of AVAX available in the market. Recent data shows a significant decrease in net outflows, with $9.61 million worth of AVAX withdrawn from exchanges in the last 24 hours alone. This massive outflow brought the total weekly net outflows to $69.21 million, the highest since April 2022. Additionally, the positive change in the Open Interest Weighted Funding Rate suggests that experienced investors are strategically positioning themselves for a potential rally. As market conditions improve, the increasing market interest coupled with decreasing supply could herald a potential bullish phase for AVAX.
If market sentiment shifts positively, AVAX could experience a significant price recovery and recover from its recent decline.