Big Investors Show Interest in AVAX

Big investors (whales) are buying more AVAX and moving it off exchanges, indicating strong interest.
Chances of a price recovery depend on market activity and investor demand.

Avalanche (AVAX) is currently under pressure, with its price declining over the last few days. Despite the downward trend, there are indications that the market may reverse soon, prompting traders to monitor AVAX closely for potential recovery.

As of now, AVAX is priced at $18.71 after a 2.13% drop in 24 hours, and it has fallen nearly 10% over the past week due to increased selling pressure. The downtrend remains strong, and AVAX faces challenges in maintaining critical price levels.

Whale Activity Insights

The recent fall in AVAX’s price can be attributed partly to changes within the Avalanche Foundation, where three board members resigned earlier this month, raising concerns about the project’s future. Although the team insists everything is still on track, investor confidence remains shaky.

Broader market trends also impact AVAX, particularly Bitcoin (BTC), which remains above $84,000. If Bitcoin continues its upward trajectory, AVAX may recover alongside other cryptocurrencies.

Despite falling prices, whale activity has shown that large investors are actively accumulating AVAX. In the last 24 hours, there were 314 large transactions, peaking at 353 on March 19 and dropping to a low of 109 on March 16. This increase in accumulation may indicate a potential price reversal as market sentiment shifts.

AVAX Volume and Open Interest Trends

Currently, AVAX’s trading volume sits at $213.47 million—a 38.92% drop. A volume spike might signal renewed buying interest. Meanwhile, Open Interest (OI), which monitors the number of active futures contracts, stands at $341.27 million but has been declining.

This decrease suggests that traders are cautious and are not opening new positions. Should OI begin to rise alongside the price, it could indicate increased trader participation and a positive trend reversal.

In essence, AVAX is at a pivotal moment. While bearish pressures are prevalent, signs of accumulation and key technical indicators suggest a potential rebound may be forthcoming. A continued strong performance from Bitcoin and AVAX breaking its resistance could lead to recovery; however, failure to hold support might result in further losses.