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- Whale traders opened $19M in leveraged longs on AVAX, boosting momentum.
- Futures open interest remains above $1B, with funding rates stable.
- RSI above 71 signals overbought conditions, risking a short-term pullback.
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Avalanche’s native token, AVAX, has been surging on the back of aggressive whale positioning and growing futures activity. But while momentum is clear, technical indicators suggest the rally could be tested soon.
Whale Traders Make Bold Bets
Big money is back in play on Avalanche. On September 23, address 0xb2ca opened a 5x long on more than 514,000 AVAX — a $17.2 million bet that quickly turned into nearly $1 million in unrealized gains. Around the same time, @cryptogle, an advisor to World Liberty Finance, took a 10x long on 66,479 AVAX, worth $2.2 million.
Looks like whales are bullish on $AVAX.
— Lookonchain (@lookonchain) September 23, 2025
0xb2ca opened a 5x long on 514,906 $AVAX($17.2M) 9 hours ago and is already sitting on a $920K unrealized profit.
Meanwhile, ogle (@cryptogle), advisor of @worldlibertyfi, opened a 10x long on 66,479 $AVAX($2.2M) an hour ago.… pic.twitter.com/WoFT1kt0Ik
These outsized leveraged trades show conviction among whales, but also raise questions. Is this genuine confidence in Avalanche’s next leg up, or just high-stakes speculation that could reverse quickly?
Futures Market Data Stays Strong
Beyond individual trades, derivatives data paints a bullish picture. Open interest across AVAX Futures has stayed above $1 billion since mid-September, a sign that more traders are entering the market. Importantly, the average funding rate has held steady at 0.0097, indicating healthy appetite for longs without tipping into overheated territory.
This balance suggests traders are bullish, but not overly leveraged. If spot market buyers step in, Avalanche could find the momentum needed to extend its rally.
Technicals Point to Overbought Territory
On the charts, AVAX traded at $34.45 at press time, near its recent highs. The RSI reading of 71.37 signals overbought conditions, while the MACD remains bullish, sitting above the signal line. However, trading volume has begun to fade, hinting that follow-through demand may be slowing.
Also Read: Bitwise Joins VanEck and Grayscale in Race to Launch Spot Avalanche (AVAX) ETF
If AVAX breaks convincingly above $35, it could signal a continuation of its bullish trend. Failure to do so may trigger a cooldown as profit-taking sets in.
Avalanche is enjoying renewed attention as whales and derivatives traders pile in. But with overbought signals flashing, the next few sessions could decide whether AVAX cements its bullish breakout or cools off before trying again.
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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.
