The price of Avalanche [AVAX] has dropped by 14.05% in the last 24 hours, with the weekly decline extending 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 active addresses (AA) and new addresses (NA) surging simultaneously, interest in AVAX is on the rise.
In the past seven days, AA surged by 44.50%, indicating an increase in trading volume among existing participants. Meanwhile, NA saw a substantial rise of 142.90%, suggesting that the adoption rate of AVAX is continually improving, possibly due to new participants finding the asset attractive.
The combination of increased market participation and a surge of new addresses is a bullish indicator, suggesting that the market may be on 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 purchasing volume of AVAX across various address categories has significantly increased, especially among addresses holding $1 million to $10 million worth of AVAX in the past 7 days.
During this period, the number of addresses within this range increased by 24.08%, indicating that whales are gradually entering the market.
Similar growth trends have been observed in other categories: addresses holding between $100,000 and $1 million of AVAX increased by 20.13%, while those 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 usually signifies a healthy buying trend, which could drive the token price higher from current levels.
The supply of AVAX is gradually decreasing.
The available money supply in the market is steadily decreasing, with a significant drop in net outflows from exchanges.
In just the past 24 hours, AVAX worth $9.61 million was withdrawn from exchanges, bringing the weekly net outflow to $69.21 million—marking the highest level since April 4, 2022.
Meanwhile, the weighted funding rate for open contracts has returned to positive territory, indicating that mature traders are preparing for a potential rebound.
If market sentiment decisively turns bullish, AVAX could experience a significant price increase, recovering from weeks of decline.