After a difficult week of sharp declines and poor performance, AVAX has begun to recover. In fact, at the time of writing, its momentum has pushed its daily gain to 13.28%—a sign of renewed market interest.
However, whether this rebound can be sustained remains in question. Thus, AMBCrypto examined whether AVAX still has upward potential in the coming days.
Support levels drive AVAX's recovery.
The support level recently identified by IntoTheBlock has become a major catalyst for AVAX's upward trajectory, enhancing its momentum over the past 24 hours. The support level is precisely $41, which is key to the altcoin's upward trend.
Particularly because it contains over 150,000 addresses holding 8.93 million AVAX.
These levels play a crucial role in price movements as they attract significant buying interest. Buyers typically view these levels as opportunities to purchase assets at favorable prices, thereby driving potential rebounds.
Recent market activity also shows that after AVAX fell to $41.32, it formed two bullish candles. Subsequently, the price surged to $50.08, marking an important rebound following the previous decline.
Whale selling creates opportunities for AVAX's rebound.
AVAX recently dropped to the support level of $41, driven by large holders (known as 'whales') who collectively own 1% of the token supply and have been selling off significantly.
This wave of selling began on December 9, peaking with a trading volume of 1,450 transactions, which then plummeted to only 400 transactions in the past 24 hours. During this period, 3.53 million AVAX changed hands, worth $161.12 million—a significant drop compared to $1.54 billion on December 9.
While whales have been selling off, retail traders and small investors have been actively buying at higher prices. This shift has helped AVAX regain some momentum.
The current market dynamics lay the groundwork for a potential rebound. If whales continue to accumulate AVAX, it could trigger significant price increases, pushing the asset to new highs.
Market outlook remains optimistic.
Finally, data from IntoTheBlock shows that the market bulls have a slight edge, with 117 bulls and 115 bears. Although this gap is small, it seems to favor ongoing bullish momentum.
Additionally, AVAX's adoption rate has been steadily increasing, with a 30-day average growth rate of 18.34%. This metric tracks the number of new addresses that have traded for the first time relative to active addresses, indicating a growing retail interest.
This growing adoption supports the recent price movements, reflecting increased participation from retail investors.
If whales resume buying and key indicators maintain their current trends, AVAX could soon see significant price increases.
