HomeNewsAVAX Bulls on a Roll: Can Avalanche Overcome Whale Selling Pressure?

AVAX Bulls on a Roll: Can Avalanche Overcome Whale Selling Pressure?

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  • Avalanche (AVAX) price has witnessed significant growth, but on-chain data reveals whale investors offloading their holdings as the price nears $50.
  • Technical indicators suggest an overheated market for AVAX, with potential resistance at $45 and a risk of price correction in the near term.

Whale Movements Amidst Avalanche’s Price Surge

Avalanche (AVAX), a leading Layer-1 altcoin, has recently garnered attention in the crypto market with its impressive price performance. However, the altcoin now faces a critical juncture as on-chain data reveals significant whale sell-offs, potentially impacting its market trajectory.

The Dual Nature of Avalanche’s Rally

AVAX has experienced a substantial 110% increase between December 1 and 16, 2023, soaring from $21 to a peak of $44, a level not seen since May 2022. Despite this bullish trend, concerns have arisen as whale investors begin to book profits, evident in the negative net-flow of large holders as reported by IntoTheBlock.

Large Holders Net-Flow: A Key Metric

The Large Holder Net-flow, an on-chain metric that compares daily inflows and outflows from wallets holding at least 0.1% of the circulating supply, has shown a notable decrease. This trend was particularly evident when AVAX‘s price crossed the $40 mark, with whales offloading 156,560 AVAX coins within 24 hours.

Market Dynamics at Play

The recent actions of corporate entities and high-net-worth investors have diluted the market supply of AVAX. If retail traders cannot sustain demand to match this increased supply, there’s a heightened risk of a major price correction.

Forecasting AVAX’s Path to $50

Technically, AVAX appears poised to reclaim the $50 mark. However, the continuous selling by whale investors could trigger a significant correction. The market’s current overheated status, indicated by a Relative Strength Index (RSI) trending at 90.88, and the approaching upper Bollinger Band resistance at $45, suggest potential hurdles ahead.

A Balancing Act for AVAX Bulls

For AVAX bulls to counter this negative forecast and push the price above $45, they must overcome the bearish pressure exerted by the whales. Given the market’s current state, a short-term bearish reversal seems more plausible than a sustained rally.

In conclusion, Avalanche’s current market situation presents a complex picture. While the altcoin has shown strong performance, the recent whale sell-offs and technical indicators point towards possible market corrections. Investors and traders in the AVAX market should remain vigilant, keeping an eye on these critical factors to navigate the evolving landscape effectively.

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Ralf Klein is a computer engineer specializing in database technology, and as such, he was immediately fascinated by the possibilities of blockchain when he first heard about it, especially since this distributed, tamper-proof technology can be the foundation for much more than just cryptocurrencies. At ETHNews, he translates the articles of his English-speaking colleagues for the German readers. Business Email: info@ethnews.com Phone: +49 160 92211628