AVAX alert: Why a drop to $11 could be near as whales exit the market
The post AVAX alert: Why a drop to $11 could be near as whales exit the market appeared on BitcoinEthereumNews.com.
A positive movement on some on-chain metric doesn’t necessarily suggest a bullish trend for AVAX. Whales and retailers are rapidly selling off their AVAX holdings but a little hope remains. The price trajectory for Avalanche [AVAX] has been sharply bearish, with a 17.13% decline over the past week, and prospects for recovery seem slim. Despite some encouraging signs, such as a 53.73% increase in trading volume in the last 24 hours and a rise in daily active users and large transactions, AMBCrypto reports that these factors might not herald a reversal of the current trend. Increased activity suggests exit by major holders IntoTheBlock data reveals heightened activity on AVAX, with the number of active addresses climbing from 38.58k to 45.69k in just 24 hours. Concurrently, the number of large transactions also grew, from 166 to 297 transactions within the same timeframe. Source: IntoTheBlock Typically, such spikes might suggest a bullish trend, but the accompanying decline in AVAX’s price indicates otherwise. This pattern of increased user engagement coupled with a price fall points to profit-taking and distribution activities. In simpler terms, it appears that whales, or large holders, are offloading their AVAX to cash out on profits, transferring their holdings to a wider range of smaller investors—a move that often signals a potential further decline in price. Further analysis by AMBCrypto confirms that this sell-off involves not just whales but retail traders as well. Whales, retailers losing confidence in AVAX According to Coinglass, the Netflow of AVAX on major centralized exchanges has been predominantly positive, which typically signals a bearish outlook for the cryptocurrency. A positive Netflow indicates that the volume of AVAX being deposited on these exchanges surpasses the amount being withdrawn, suggesting an increased willingness among traders to sell rather than hold. Source: Coinglass This situation also means that…
Filed under: News - @ September 3, 2024 6:06 am