Avalanche (AVAX) recently surpassed the upper boundary of a descending channel on May 13, leading to an approximately 10% increase in its price. Yet, indications from on-chain data hint at a potential downturn in demand for the altcoin throughout the past week.
Whales in Avalanches Try to Stay Out of Trouble
The 25th-largest cryptocurrency by market capitalization, AVAX, has seen a decline in demand over the last seven days, according to an analysis of user activity.
The number of active addresses conducting AVAX transactions fell by 18% every day during that time.
There was a decline in new demand for the altcoin as well. The quantity of new addresses created every day to trade AVAX decreased by 2% over the previous week.
Whale activity has also decreased during the past month in AVAX. Large investors in AVAX have decreased their exposure even though the company's price broke above resistance on May 13 and has since continued rising.
The amount of AVAX transactions between $10,000 and $100,000 has decreased by 26% in the last 30 days. In a similar vein, throughout the same period, transactions totaling between $100,000 and $1 million have decreased by 17%.
Price Prediction for AVAX: Weakening Uptrend Endangers Token
AVAX's Aroon Up Line has been trending lower even though its price has increased since it broke above the top line of its declining channel.
This indicator shows the strength of a trend and probable points of price reversal for an asset. The uptrend is weak and the most recent high was attained a long time ago while the Aroon Up line is near zero. This might point to a possible reversal of the trend.
At present, observations from the Parabolic Stop and Reverse (SAR) indicator show its dot positioned above AVAX’s current price. This indicator is utilized to discern potential trend directions and reversal points for an asset. When its dotted lines intersect with an asset’s price, it typically signifies a bearish signal, suggesting the possibility of a price decrease.
May 2024, Cryptoniteuae