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AVAX increases blockchain fees but retail traders are still quietly withdrawing: What does this mean?
Avalanche (AVAX) has fallen 10% in the past 24 hours. This trend has persisted throughout the past month, with the highest cumulative increase only reaching 5.32%. Current market analysis indicates a high possibility regarding the direction of this asset, especially in the context of declining participation from retail traders but a significant increase in activity from whales.
The reasons behind the recent trend of AVAX
According to a report from Nansen, AVAX is facing a market paradox, stemming from the stark difference between the behavior of whales and retail traders.
Specifically, the number of active addresses has fallen sharply by 74%, down to 414,234, while the number of transactions has also decreased by 34%, to a level of 2,990,667. This indicates that the interest from retail investors is gradually weakening.
Whale activity is often a positive signal for the market, as it indicates an increase in the confidence of large investors. AMBCrypto has closely monitored the impact of this trend on the market.
What does the presence of whales mean?
The trend of increasing whale activity has been further reinforced in the spot market.
In the past 24 hours, whale wallets have purchased AVAX worth 10.62 million USD, nearing the highest daily accumulation level of this year at 10.63 million USD, recorded on April 6.
AVAX's reaction on the price chart
On the daily time frame, AVAX has broken through the important resistance area around the $23 mark — a region that has often acted as a pivot point of support and resistance in the past. This breakout is significant, indicating that the short-term trend has shifted to bullish, creating a clear advantage for the bulls.
In a positive scenario, if the price decisively breaks above $26.5, it will confirm the dominance of the bulls and pave the way for a rally towards the strategic resistance area around $35 — equivalent to an impressive growth of about 51.4% compared to the current price.
Mr. Teacher