Avalanche (AVAX) has been under significant selling pressure, with its price declining steadily over the past few days. Despite the downturn, market indicators suggest a possible reversal, making AVAX a closely watched asset among traders.
At the time of writing, AVAX is priced at $18.71, reflecting a 2.13% decline in the last 24 hours. Over the past week, the cryptocurrency has dropped nearly 10% as selling activity intensified. The prevailing downtrend suggests AVAX may struggle to maintain crucial support levels.
Whale Activity Hints at Accumulation
A key factor contributing to AVAX’s price slump is uncertainty surrounding the Avalanche Foundation. Earlier this month, three board members resigned, raising concerns about the project’s direction. Despite reassurances from the team, investor sentiment remains cautious.
Broader market trends also play a role. Bitcoin (BTC) continues to hover above $84,000, and a sustained bullish trend for BTC could provide momentum for AVAX and other altcoins.
Despite the bearish sentiment, whale activity indicates a shift. In the last 24 hours, 314 large transactions were recorded, with a seven-day high of 353 on March 19 and a low of 109 on March 16. This increased accumulation suggests growing confidence among institutional investors, potentially signaling a reversal in AVAX’s price trajectory.
Trading Volume and Open Interest Decline
Currently, AVAX’s trading volume stands at $213.47 million, marking a 38.92% decline. A spike in volume could indicate renewed buying interest and a possible price recovery.
Open Interest (OI), which tracks the number of active futures contracts, is at $341.27 million but has been declining. This indicates fewer traders are opening new positions, reflecting caution in the market. However, if OI rises alongside price action, it could confirm renewed trader engagement and signal a trend reversal.
AVAX is at a pivotal point. While the bearish trend dominates, increasing accumulation and shifting market dynamics suggest a potential rebound. If Bitcoin maintains its upward momentum and AVAX breaks key resistance levels, a recovery could follow. However, failure to hold critical support levels may lead to further downside pressure.
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.
Also Read: Avalanche (AVAX) Faces Strong Resistance: Bearish Trend Targets $14
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.
