AVAX's Recovery After a Weak Phase
After a challenging week marked by a sharp decline, AVAX has started to recover. At the time of writing, it has achieved a 13.28% daily gain, signaling renewed market interest. However, the question remains whether this rally is sustainable.
Key Support Level Driving Growth
Analysis shows that the $41 support level, identified by IntoTheBlock, played a crucial role in reversing AVAX's price trajectory. This level encompasses over 150,000 addresses holding a total of 8.93 million AVAX.
Support levels like these often attract buying interest, as investors perceive them as an opportunity to secure assets at favorable prices.
After dropping to $41.32, AVAX formed two bullish candles, leading to a subsequent price rise to $50.08. This movement highlights a significant recovery following previous losses.
Whale Sell-Offs as an Opportunity
The recent decline in AVAX's price was influenced by large holders, known as whales, who initiated massive sell-offs. These sales began on December 9, peaking at 1,450 transactions. Over the past 24 hours, the number of transactions has dropped to just 400.
During this period, 3.53 million AVAX worth $161.12 million changed hands, a sharp decrease from the $1.54 billion recorded on December 9. Conversely, retail investors and smaller market players started actively buying, which supported the price recovery.
If whales resume accumulating AVAX, it could lead to a significant price surge, pushing the asset to new highs.
Market Remains Slightly Bullish
Data from IntoTheBlock reveals that bulls slightly outweigh bears on the market, with a ratio of 117 bulls to 115 bears. While this margin is small, it indicates continued positive momentum.
Another positive indicator is the growth in AVAX adoption, with a 30-day average increase of 18.34% in new addresses. This metric reflects growing interest from retail investors engaging with the network.
Conclusion: Growth Is Possible
If whales resume their buying activity and key market metrics maintain their current trends, AVAX has the potential for a significant price increase. This combination of factors could support the bullish scenario and strengthen its position in the market.
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