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AVAX loses 29% in a week: Could these factors trigger a price reversal?
In the midst of a sharp downturn, AVAX’s price has plummeted by a staggering 29.12% over the past seven days. This recent decline is reminiscent of previous market fluctuations that have often preceded significant price reversals. Amid this turmoil, it may be premature to declare a dead end for the cryptocurrency.
Recent data highlights several factors that could potentially trigger a shift in market sentiment and propel AVAX’s value higher.
One key indicator pointing towards potential gains lies in the surging Active Addresses (AA) and New Addresses (NA). In seven days, AA has skyrocketed by 44.50%, hinting at growing market interest and increased adoption rates. Furthermore, NA saw a substantial spike of 142.90% during this period, indicating that new investors are entering the fray.
Additionally, large holders or whales may be responsible for this surge in activity, as their accumulation of AVAX has increased significantly over the past week. This accumulation is demonstrated by the growth trends observed across various address categories.
It’s not just the influx of new addresses and whale accumulation driving sentiment towards a potential turnaround; market data also reveals an ongoing decline in available supply. In fact, exchange net outflows have reached their highest point since April 2022, signaling that institutional investors are increasingly unwilling to sell AVAX at its current price. This decrease in circulating supply further strengthens the argument for a price reversal.
As sentiment shifts and whales reposition themselves, it becomes increasingly likely that this cryptocurrency will see a dramatic turnaround, potentially eclipsing previous highs.
Source: ambcrypto.com
