Significant buying by large investors and increased activity on the Avalanche (AVAX) blockchain suggest a potential price recovery.

Recent AVAX Price Movement

AVAX experienced a roughly 5% price decrease in the last 24 hours, aligning with a broader market correction. This short-term dip was accompanied by profit-taking and selling pressure.

Whale Activity and Accumulation

Despite the price decline, significant on-chain activity indicates potential accumulation. A large whale purchased approximately 200,000 AVAX, with an additional $12 million transferred to a Coinbase wallet, suggesting increased liquidity and long-term buying interest.

Positive On-Chain Indicators

Trading volume has seen a $200 million increase, with decentralized exchange (DEX) trades representing roughly 33% of the total daily volume. The number of smart contracts has tripled year-over-year and the burn rate has reached 4.8 million, positively impacting supply.

Potential Reversal and Monitoring

Traders should monitor the 200 EMA, the 0.75 Fibonacci retracement level, and sustained DEX volume for a potential price reversal. A reclaiming of the 200 EMA would signal a bullish trend, while maintaining a stop-loss below the $22–$26 range is crucial.