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AVAX Loses 29% in a Week: Could These Factors Trigger a Price Reversal?
The cryptocurrency market is notoriously unpredictable, and the recent performance of AVAX (AVAX) has been no exception. Over the past seven days, AVAX’s value has plummeted by an astonishing 29%. This drastic downturn has left many investors wondering whether there are any factors that could potentially trigger a price reversal.
One key area to watch is the rising surge in address metrics, particularly active addresses. Data suggests that this uptick in activity may be driven by whales, large holders of AVAX, accumulating significant amounts of the asset. This accumulation by whales is often seen as a positive sign for market momentum, as their buy orders can create strong buying pressure.
In addition to growing addresses and whale activity, the overall supply of AVAX available on exchanges has been steadily decreasing over the past 24 hours and week. As a result, this decline in availability could lead to increased demand, which in turn may fuel a price reversal.
Furthermore, the Open Interest Weighted Funding Rate has recently returned to positive territory, indicating that sophisticated traders are positioning for a potential rally. While market sentiment can shift rapidly, these developments collectively suggest that the current price slump may not persist indefinitely.
While no one can predict with certainty what will happen in the cryptocurrency market, the combination of growing addresses, whale accumulation, and declining supply could potentially signal a turning point for AVAX’s value.
Source: ambcrypto.com
