- Avalanche (AVAX) has experienced a remarkable bull run, soaring to $44 with an impressive 110% surge between December 1 and December 16.
- However, a cloud of uncertainty looms as on-chain data unveils a significant offloading of $6.8 million in AVAX by whale investors.
Avalanche (AVAX) has been on a spectacular bull run, surging to $44 with a remarkable 110% gain between December 1 and December 16. However, recent on-chain data suggests a potential storm on the horizon as whale investors quietly offload a staggering $6.8 million in AVAX after the price crossed the $40 mark.
Despite AVAX’s impressive 30% rally this week, the net-flow of large holders, wallets holding at least 0.1% of the circulation supply, has taken a sharp dip, indicating a significant decrease in buying pressure from institutional players. This trend began when AVAX crossed the $30 mark around December 8 and intensified as the price soared past $40 on December 15.
In the last 48 hours, AVAX whales have seized the opportunity to capitalize on profits, selling off 156,560 AVAX coins. This sudden selling spree among corporate entities and high net-worth investors raises concerns among retail traders, as it could potentially lead to a major correction in AVAX’s price.
AVAX Price Outlook
The current price of $44 seems to be the tipping point for whale investors, and as AVAX approaches the critical $45 resistance, technical indicators paint a potentially bearish picture. The Relative Strength Index (RSI) is at an extreme 90.88, signaling an overheated market. Additionally, the upper Bollinger Band indicator suggests a potential reversal point at $45.
While AVAX bulls eye the coveted $50 territory in the short term, the market’s vulnerability to a correction cannot be ignored. The significant offloading by whale investors threatens to dilute market supply, potentially causing downward pressure on AVAX’s price if retail traders fail to match this with fresh demand.
In this scenario, a short-term bearish reversal seems more likely, as indicated by technical indicators and on-chain data. However, if AVAX manages to decisively break above the $45 resistance, the bulls may invalidate the negative forecast.
Crypto enthusiasts and investors should exercise caution and closely monitor the unfolding developments. The interplay between institutional profit-taking and retail demand will likely shape AVAX’s immediate future, making it a critical period for market participants. As the cryptocurrency community watches with bated breath, the question remains: Will AVAX sustain its bullish momentum or succumb to the growing bearish pressure? Only time will tell.
