The popular layer-1 blockchain Avalanche (AVAX) could potentially rise in the short term if trading activity increases.
While there has been activity in the crypto market in recent days, it attracted attention that major altcoins faced selling pressure. The inability of the leading altcoin Ether (ETH) to persist above $ 4,000 was one of the main reasons for money outflows.
One of the major altcoins affected by turbulent market conditions was AVAX. According to on-chain data, recent significant selling by whales pushed AVAX into the potential support zone.
AMBCrypto reported that the bull-bear ratio in AVAX indicates that the decline will end soon.
AVAX held on to an important support level
Avalanche (AVAX), which recorded a sharp decline last week, has started to recover in recent days. AVAX has gained close to 3 percent in the last 24 hours.
According to IntoTheBlock data, the support level at $ 41 triggered the popular altcoin’s upward trend. Purchases from the level in question contributed to the 25 percent rise. In the analysis, he reported that the $ 41 support is protected by more than 150 thousand wallets holding 8.93 million AVAX.
The following statements were made in the analysis;
“Such levels play an important role in price movements as they attract significant buying interest. Buyers often see these levels as an opportunity to buy the asset at an affordable price.”
Recent market movements showed that AVAX formed two bullish candles after falling to $41.32, and the price has since risen to $51.
Whales create opportunity for AVAX
According to on-chain data, whales made an intense sale during the period when AVAX fell to $ 41. The analysis stated that the whales started these sales on 9 December, during which time 3.53 million AVAXs worth $ 161 million were sold.
AVAX’s recent decline to the $ 41 support level was driven by large holders known as whales, who collectively own 1% of the token supply and sell heavily.
The analysis noted;
“While whales are selling, individual investors are buying. This change of hand allowed AVAX to regain momentum.”
Stating that AVAX has reached a positive outlook, AMB Crypto predicted that a major rally could take place if whales start accumulating AVAX again.
