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AVAX loses 29% in a week: Could THESE factors trigger a price reversal?
Despite the recent decline of Avalanche’s native token, AVAX, losing 29% in the past seven days, there are indicators suggesting that this downward trend may be about to reverse. A combination of whale accumulation, growing addresses, and decreasing supply could potentially drive the coin’s price higher.
Market interest in AVAX is rising, as both Active Addresses (AA) and New Addresses (NA) have surged simultaneously. Over the past week, AA saw a 44.50% increase, signifying more transactions by existing participants, while NA recorded a remarkable rise of 142.90%, indicating growing adoption and new market entrants finding the asset appealing.
The combination of these indicators suggests that the market may be shifting towards a more bullish sentiment. Large holders, or whales, are increasingly accumulating AVAX, with addresses holding between $1 million and $10 million in the token experiencing a 24.08% increase over the past week. Similar growth was observed among other categories, including those with balances ranging from $100,000 to $1 million (20.13%) and $10,000 to $100,000 (23.56%).
These collective accumulation by large traders often aligns with healthy buying trends, potentially driving the coin’s price higher. Furthermore, a steady decline in the available supply of AVAX, coupled with significant exchange net outflows, may be indicative of increased demand for the token.
In light of these factors, it is possible that market sentiment will shift towards a bullish momentum, allowing AVAX to recover from its recent decline.
Source: ambcrypto.com
