Avalanche (AVAX) Rebounds 2.6% Amid Mixed Market Signals

Key Takeaways:

• AVAX gained 2.62% after a month-long decline but faces mixed market sentiment.
  
• Smart money investors are holding AVAX, while retail traders are taking profits and increasing shorts.
  
• Breaking key resistance at $19.81 could drive further gains, but bearish retail pressure may pose a challenge.

Avalanche (AVAX) has finally posted a 2.62% gain over the past 24 hours, ending a month-long downtrend that saw its price fall 26.22%. Yet, market sentiment remains mixed, with smart money investors holding firm while retail traders begin to cash out. The coming days may prove critical in determining whether this recent uptick can evolve into a sustainable rally.

Smart Money Investors Hold AVAX Despite Strong Profits

According to on-chain data from Nansen, smart money investors—well-regarded for their ability to time market cycles—have achieved up to 375% returns on AVAX during the recent downturn. Collectively, they are sitting on unrealized gains nearing $1 million across 11 key positions.

💰 Top Smart Money trader on @avax in the last 7D has racked up nearly $1M in unrealized PnL — with 375% ROI across 11 positions 🤯 pic.twitter.com/igCe1myOnn

— Nansen 🧭 (@nansen_ai) June 23, 2025

Interestingly, these seasoned investors are not rushing to exit their positions. Their continued confidence suggests potential optimism about AVAX’s medium-term prospects. This behavior stands in sharp contrast to the actions of retail investors, who appear less bullish.

Retail Traders Signal Bearish Sentiment with Sell-Offs and Shorts

CoinGlass data reveals a shift among retail participants. After accumulating $11.9 million worth of AVAX last week, retail traders have now begun selling, with $821,000 in AVAX offloaded in the past 24 hours alone. Additionally, derivative traders are opening new short positions, as evidenced by a negative Open Interest Weighted Funding Rate of -0.0022%.

This divergence between smart money and retail behavior could set the stage for volatility in the AVAX market.

Also Read: SEC Delays VanEck Spot Avalanche ETF Decision, AVAX Price Drops Amid Market Uncertainty

Breakout Offers Opportunity but Key Resistance Looms

Technically, AVAX has broken out of a descending channel—typically a bullish signal. However, strong resistance lies ahead, particularly at $19.81. Overcoming this level could open the path to $22, representing a 27% potential upside from current levels.

Yet with retail selling pressure mounting, achieving this breakout remains uncertain.

As AVAX’s Total Value Locked (TVL) remains neutral, market sentiment is finely balanced. For now, smart money is holding firm, but rising retail bearishness may limit upside potential.

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