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Avalanche (AVAX) is experiencing a pivotal moment, with recent data suggesting a surge in transaction sizes and ongoing whale activity that may dictate the asset’s future movement.
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The current market dynamics indicate that despite a substantial price increase over the past month, the asset’s ability to maintain upward momentum hinges on the participation of large investors and ongoing demand.
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According to COINOTAG, analysts emphasize that the impending price action for AVAX will depend heavily on the strategies adopted by whale investors who control a significant portion of the supply.
This article explores the recent surge in Avalanche (AVAX) transaction volumes and whale activities, signaling potential upward price movements as key investors engage.
Surge in AVAX purchases
Avalanche (AVAX) has seen a significant spike in its average transaction size, with the figure soaring to $3,687.7 in the past 24 hours and maintaining a seven-day average of $2,935.71.
This trend suggests that traders are purchasing larger quantities of AVAX per transaction, indicating a potential increase in demand that could drive the asset’s value and contribute to price surges.
The average transaction size this week has been the highest since early November, particularly on December 8, when a massive spike coincided with continued price growth.
Source: IntoTheBlock
Notably, this increase in transaction value occurred despite a slight decline in active addresses—market participants engaging with AVAX—by 1.23%. Typically, a drop in active addresses correlates with a price decrease, yet AVAX has defied this pattern.
Further analysis by COINOTAG highlighted that whales, or large-scale investors, played a major role in driving AVAX’s recent price movements, reflecting their substantial impact on the market.
Whales maintain a strong presence
According to IntoTheBlock, whale activity in the AVAX market has grown by 0.25% over the past 24 hours, indicating their continued influence.
Whales are defined as addresses holding at least 1% of an asset’s supply, and their actions often significantly affect market trends. Currently, 10 whale addresses collectively control 27.38% of the total AVAX supply.
These addresses are categorized as either high-activity or low-activity participants, both of which have played a crucial role in sustaining AVAX’s value despite waning interest from other market participants.
Source: IntoTheBlock
Collectively, these addresses hold 27.38 million AVAX, a figure that has increased by 12.44% over the past week. This contrasts with a slight decline in activity from the broader market.
The divergence between whale activity and general market interest, alongside the corresponding price increase, suggests that whales are entering the market to acquire more AVAX for long-term investments—this trend reflects in the recent price surge.
Can AVAX reach $65?
At press time, 81% of AVAX holders were “in the money,” meaning their positions are profitable compared to their entry points. In contrast, only 15% of holders were “out of the money,” or at a loss.
This significant disparity favors bullish sentiment, as a predominantly profitable market climate often propels further buying.
Whale activity and an uptick in market interest could amplify this trend, potentially allowing the token to surpass its next resistance zone between $54 and $80, with $65 positioned as the critical target.
Source: IntoTheBlock
If the current momentum strengthens and a substantial percentage of “in the money” addresses continue to accumulate, AVAX could realistically challenge the $65 mark and trade above it, enabling further bullish prospects.
Conclusion
The recent trends in transaction sizes and whale activities around Avalanche (AVAX) indicate a robust potential for upward price movement, particularly with a significant percentage of holders being profitable. As market dynamics evolve, investor strategies will be critical in determining if AVAX can breach the $65 threshold.
