Whales are leaving Avalanche (AVAX): A drop is possible.

Despite the increase in activity on the Avalanche network, the ongoing downtrend in the AVAX price has confused people.

IntoTheBlock data shows that activity on the Avalanche network has increased and the number of active addresses has increased from 38.5 thousand to 45.6 thousand in 24 hours. At the same time, the number of large transactions has increased from 166 to 297 in the same time frame. The increase in large transactions may be a sign of an increase in the parity. However, the ongoing downtrend in AVAX suggests the opposite.

It is highly likely that whales are selling their AVAX to cash in on their profits. According to Coinglass, the net flow of #AVAX on major cryptocurrency exchanges is positive. The data in question shows that the coins sent to the exchanges are more than the ones withdrawn. In short, $AVAX investors are in a selling trend.

AVAX, which has been in a downtrend since $27.50, is finding buyers at $22.23 as of the writing of the news. Bitcoin adopting $60,000 as support, the decline of $BTC dominance or good news from the #Avalanche ecosystem will push the parity to higher levels.

In such a scenario, $24.80 - $27.31 - $30.05 - $33 - $35.08 - $38.60 and $41.87 can be targeted for AVAX, respectively. In the short/medium term, attention should be paid to the $31.30-$33 range. Persistence above this range will increase bullish signals for the parity.

Factors such as the decrease in demand for the Avalanche ecosystem, the continuation of the weak outlook in #BTC or the increase in BTC dominance will push #AVAX to a decline. In such a scenario, a pullback to the $20 band may be seen first. Afterwards, the $17.27 – $15.97 and $14.81 levels should be monitored as support.