AVAX Whale Activity Slowdown: Price Implications

Avalanche (AVAX) has experienced a notable slowdown in whale activity this month. This reduced volume of large transactions has led to price consolidation below a key trendline resistance, raising questions about AVAX's short-term trajectory.

AVAX Price Consolidation Under Key Resistance

Since early August, AVAX has consolidated below a major trendline resistance. This prolonged consolidation indicates limited bullish momentum. Historically, such periods have been followed by significant price movements. Given the decline in whale activity, AVAX may struggle to break through this resistance.

Instead, a retest of lower support levels is possible, with $22 representing a crucial support zone. This level has historically served as a strong accumulation area, potentially providing the bullish momentum needed for a trend reversal.

Source: TradingView

Could $22 Spark a Bullish Reversal?

If buying pressure remains insufficient to break the trendline resistance, a drop to $22 is likely. This level could function as an accumulation zone, where larger investors might enter long positions. For a bullish reversal, AVAX needs significant accumulation of bullish momentum, and $22 appears to be the most probable catalyst.

While a drop to $22 is a possibility given current market conditions, patience is advised. This level could represent the reversal point for AVAX, enabling buyers to take long positions and drive prices higher.

Source: IntoTheBlock

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