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- 43% of AVAX’s circulating supply is now staked, reducing liquid supply.
- Whales continue accumulating AVAX across both spot and futures markets.
- The $6.90 resistance level remains the key breakout target for traders.
Avalanche (AVAX) is showing several on-chain signals that could support a stronger price move in the coming weeks. While the token continues to trade within a consolidation range, rising staking participation and growing whale activity suggest that large investors remain confident despite the lack of a confirmed breakout.
Recent staking statistics reveal that a significant share of AVAX’s circulating supply is now locked, reducing the amount of tokens available for active trading. Combined with increasing spot and futures positioning from large holders, these developments are fueling speculation that Avalanche may be laying the foundation for a bullish trend.
Nearly Half of AVAX Supply Locked in Staking
Fresh staking data shows that approximately $204.77 million worth of AVAX has been committed to staking, representing roughly 43% of the token’s circulating supply.
This matters because staked tokens are effectively removed from the liquid market. With fewer coins available for leveraged trading or quick selling, selling pressure can decline if demand remains steady or increases.
The growing staking ratio also reflects long-term confidence among holders who appear willing to lock up their assets instead of seeking short-term gains.
Whales Continue Building Positions
On-chain derivatives data points to another encouraging trend for Avalanche. Large investors are steadily increasing their exposure in both the spot and futures markets.
Rather than waiting for a confirmed breakout, whales appear to be accumulating while AVAX remains range-bound. This behavior often suggests expectations of stronger price action ahead, although it does not guarantee a rally.
The combination of reduced circulating supply and continued whale accumulation creates a constructive backdrop that traders are watching closely.
Technical Setup Eyes the $6.90 Resistance
From a technical perspective, AVAX continues trading inside a pennant formation that has developed since late June. The price is currently sitting near the apex of that pattern, a zone where breakouts frequently occur as volatility compresses.
Momentum indicators also leave room for additional upside, with the Stochastic RSI not yet reaching oversold conditions that could weaken bullish momentum.
If buyers regain control, the next major level to watch sits around $6.90.
Liquidation heat map data strengthens the importance of this price zone, showing more than $1 million in clustered liquidity near that level. Such liquidity pools often become magnets for price action as traders target areas where large liquidations may occur.
Also Read: Bitwise ETF Shakes Up Crypto Holdings: Hyperliquid Replaces Polkadot and Avalanche
Avalanche’s current consolidation may appear quiet on the surface, but on-chain metrics tell a more active story. A substantial portion of the circulating supply remains staked while whales continue expanding their positions across multiple markets.
Although a breakout is not yet confirmed, the combination of tightening supply, institutional-sized accumulation, and a well-defined technical pattern suggests AVAX could be approaching an important turning point. Traders will likely keep a close eye on whether the token can clear the $6.90 resistance and confirm the next directional move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
