Avalanche (AVAX) has maintained an uptrend in the last week, with its price rising.
Despite the recent gains, AVAX whales continue to distribute their holdings.
Key technical indicators, such as the Aroon Indicator and the Moving Average Convergence Divergence (MACD), hint at the possibility of a sustained rally.
Avalanche (AVAX) has successfully maintained an upward trajectory over the past week, riding the wave of the broader market recovery. Currently trading at $28, the altcoin’s price has experienced an 8% increase in the past seven days.
This recent uptick in AVAX’s value comes on the heels of an extended period of decline. To provide context, on July 3, AVAX’s price plummeted to an eight-month low of $24.45 before staging a rebound and logging its most recent gains.
However, despite this positive price action, AVAX’s whale investors continue to distribute their holdings, raising concerns about the sustainability of the rally.
Avalanche Whales Remain Unconvinced by Recent Gains
While AVAX’s value has witnessed a nearly 10% increase over the past week, the altcoin’s large holder netflow has taken a major hit.
According to data from IntoTheBlock, the large holder netflow has dropped by 1.43% during the same period, and over the past 30 days, it has plunged by a staggering 40%.
Source: IntoTheBlock
Large holders, also known as whales, are defined as addresses that hold over 0.1% of an asset’s circulating supply.
A spike in an asset’s large holder netflow is generally considered a bullish signal, as it indicates that whale addresses are accumulating the asset.
Conversely, when the netflow declines, it suggests that this cohort of investors is selling their holdings, which is perceived as a bearish signal, hinting at potential selling pressure and a risk of price decline.
The whales’ decision to sell may be attributed to the prevailing bearish sentiment surrounding AVAX, despite the rally witnessed in the past week. Data from Santiment reveals that AVAX’s weighted sentiment has remained negative over the past seven days, currently standing at -0.48%.
