How AVAX Price Could Drop After Whale Activity Declines

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Avalanche’s AVAX price has experienced a sharp decline in whale activity since the beginning of February. Large transactions, which typically drive price movement, have significantly reduced, leading to AVAX consolidating below a key resistance zone.

This raises concerns about the token’s short-term trajectory. Analysts suggest that AVAX could drop to the critical $22 support level if buying pressure does not return, which has historically acted as an accumulation zone for bullish reversals.

AVAX Whale Activity at a Standstill

According to IntoTheBlock, large transactions involving AVAX whales have steadily declined, signaling reduced institutional and high-net-worth investor participation. This trend suggests that major market players are either waiting for a lower entry point or shifting focus to other assets.

“Whales often dictate short-term price movements. Their absence in the market creates uncertainty and weakens bullish momentum,” said crypto analyst Kelvin Murithi.

Without whale activity, AVAX price is struggling to gain upward momentum, increasing the risk of further declines.

AVAX Price Stalls Under Key Resistance

Since February 6, AVAX has remained in a tight consolidation phase below a major trendline resistance, which has been in place since August 2024. This indicates that buyers are failing to push the price above this resistance level.

Market trends suggest that whenever AVAX consolidates below a key resistance, a significant AVAX price movement follows. Given that whale activity is absent, a breakout above resistance seems unlikely, and a retest of lower support levels could occur instead.

Could $22 Support Level Trigger a Rebound?

If AVAX price fails to generate sufficient buying pressure, it may drop to $22, which has historically acted as a strong support level.

Crypto expert Saman Waris explained, “The $22 mark has been a crucial accumulation zone. A retest of this level could provide an opportunity for long-term investors to enter before a potential reversal.”

If large investors see $22 as an attractive entry point, it could create the necessary bullish momentum for a trend reversal.

Market Sentiment and Technical Indicators

– Trading Volume Decline

AVAX’s trading volume has significantly dropped, indicating that fewer traders are actively participating. This decline suggests that investor confidence in short-term price gains remains low.

– Moving Averages Show Weakness

Technical analysis reveals that AVAX price remains below its 50-day and 200-day moving averages, both of which indicate a bearish outlook. If the price fails to break above these levels, downward pressure is likely to persist.

Is There Hope for a Bullish Reversal?

While the short-term outlook suggests further downside risk, several factors could spark a turnaround:

• A return of whale activity could provide liquidity and trigger an uptrend.
• Stronger market-wide bullish momentum could push AVAX past resistance levels.
• A confirmed bounce from $22 could attract buyers looking for discounted prices.

For now, analysts caution that AVAX remains in a fragile position, and traders should monitor support and resistance levels carefully.

Conclusion on AVAX Price

AVAX’s whale activity decline and price consolidation under key resistance suggest a potential drop to $22, which could serve as a crucial accumulation zone.

While technical indicators and trading volume show weakness, long-term investors may see this as an opportunity if AVAX manages to hold above support levels.

Investors should closely watch Turkishnyradio to get updates on whale transactions, resistance breakouts, and overall market sentiment to determine AVAX price next move.

Frequently Asked Questions (FAQs)

1. Why is AVAX price consolidating?

AVAX is struggling to break above a key resistance level due to a decline in whale activity and reduced trading volume.

2. What happens if AVAX drops to $22?

If AVAX falls to $22, it could act as a strong support zone where long-term investors accumulate, potentially triggering a bullish reversal.

3. How does whale activity impact AVAX prices?

Whale transactions create liquidity and drive price movements. A decline in whale activity suggests weaker buying pressure and reduced price momentum.

4. What are the key indicators to watch for AVAX?

Investors should monitor trading volume, resistance levels, and whale transaction data to gauge market trends.

5. Could AVAX’s price recover soon?

If whale activity returns and AVAX breaks above resistance, it could signal the start of a bullish reversal. However, current trends suggest further consolidation or downside risk.

Glossary of Key Terms

• Whale Activity: Large transactions by major investors that can impact price movements.
• Support Level: A price point where buying interest is strong enough to prevent further declines.
• Resistance Level: A price level where selling pressure is strong enough to prevent further gains.
• Moving Averages: Technical indicators used to analyze price trends over time.
• Liquidity: The ease with which an asset can be bought or sold without affecting its price.

References

1. IntoTheBlock: AVAX Whale Activity Report
2. TradingView: AVAX Technical Analysis
3. Kelvin Murithi’s Market Insights
4. Saman Waris’ Crypto Commentary