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- Whales accumulated over $6M in AVAX amid the recent price drop.
- Avalanche’s on-chain volume surpassed $950B with strong DEX activity.
- Technical indicators suggest a potential rebound if key levels hold.
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Avalanche (AVAX) has come under the spotlight again after a sharp 5% decline in the past 24 hours, extending its weekly losses to nearly 7%. Yet, beneath the surface, large investors appear to be positioning for a potential comeback. On-chain data from Arkham shows that one whale accumulated roughly 200,000 AVAX, worth around $6 million, within a day. Another whale transferred $12 million worth of tokens into Coinbase, suggesting a reshuffle of positions rather than panic selling.
🚨 JUST IN: Whale just bought ~$6M $AVAX pic.twitter.com/Kph25TiXGS
— Marc Shawn Brown (@MarcShawnBrown) October 7, 2025
These moves hint at accumulation during weakness—a classic behavior among experienced traders anticipating a rebound.
Avalanche Network Sees Booming On-Chain Growth
Beyond price action, Avalanche’s fundamentals remain strong. Data from DefiLlama shows a $200 million spike in trading volume, pushing its total cumulative activity past $950 billion. Notably, decentralized exchange (DEX) trades now account for one-third of all daily volume, signaling growing user engagement.
Development activity also continues to expand. The Avalanche ecosystem now hosts over 44 million smart contracts, more than triple the number recorded a year ago. Additionally, 4.8 million AVAX have been burned, steadily reducing circulating supply.
Technical Outlook: Key Levels to Watch
Technically, AVAX recently broke below its rising wedge pattern, confirming short-term weakness. The price is hovering near the 0.75 Fibonacci retracement level, just under the 200 EMA. If bulls can reclaim that moving average, it could mark the start of a trend reversal.
However, failure to hold current levels might send the token back toward $26—a key support zone from mid-September.
Outlook: Signs of a Brewing Reversal
Despite short-term volatility, on-chain strength and whale accumulation suggest confidence among large holders. With development momentum and new projects like FIFA’s NFT program launching on AvaCloud, Avalanche appears to be positioning for renewed growth.
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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.
Also Read: Avalanche Treasury Launches $1B AVAX Investment Vehicle
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.
