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- A.Recent data shows an increase in several address metrics, including active addresses, a positive signal for AVAX.
- Whales could be behind this increase in active addresses, as well as the increase in USD balances held by large accounts.
Avalanche (AVAX) price declined over the past 24 hours, falling 14.05% and extending its weekly losses to 29.12%. Despite this downtrend, a change in market sentiment could be imminent.
According to AMBCrypto, whale activity appears to be intensifying, which could position AVAX for a new market phase.
Growing Addresses Show Increased Market Interest
Market interest in AVAX is increasing as active addresses (AA) and new addresses (NA) have increased simultaneously.
Over the past seven days, AA has increased by 44.50%, indicating an increase in transactions from existing participants. Meanwhile, NA saw a remarkable rise of 142.90%, suggesting growing adoption of AVAX, perhaps driven by new market entrants finding the asset attractive.
Source: In the block
This combination of increased market participation and an influx of new addresses is a bullish indicator, suggesting that the market could be trending upward.
According to AMBCrypto, large holders, or whales, could be driving this growth by accumulating millions of dollars of AVAX, thereby contributing to the increase in activity.
Large holders accumulate AVAX
There has been a notable increase in AVAX acquisitions across various address categories, particularly among those holding between $1 million and $10 million worth of AVAX over the past seven days.
Addresses in this range increased by 24.08% during this period, indicating that whales are gradually entering the market.
Similar growth trends were seen in other categories: addresses holding between $100,000 and $1 million in AVAX saw a 20.13% increase, while those with balances between $10,000 and $100 000 recorded an increase of 23.56%.
Source: In the block
This collective accumulation by large traders suggests a bullish outlook. When market sentiment among these key players aligns, it typically signals a healthy buying trend, which could push the coin’s price higher from its current levels.
AVAX supply is gradually decreasing
The available supply of coins in the market is steadily declining, with net exchange outflows decreasing significantly.
In the last 24 hours alone, $9.61 million of AVAX was withdrawn from exchanges, bringing its weekly net outflow to $69.21 million, the highest level since April 4, 2022.
Source: Coinglass
At the same time, the weighted open interest funding rate has returned to positive territory, signaling that sophisticated traders are positioning themselves for a potential rally.
Read Avalanche (AVAX) Price Prediction 2024-2025
If market sentiment shifts decisively toward bullish momentum, AVAX could see a substantial price rally, recovering from its multi-week decline.
