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