Avalanche [AVAX] Dips 4.12% Despite Whales Accumulating $10.62M

Market analysis reveals several possibilities for the asset's trajectory, especially as retail trader engagement drops and whales become more active.

Avalanche [AVAX] observed a 4.12% dip over the past 24 hours. This trend has been consistent over the past month, with the highest cumulative gain recorded at 5.32%.

As retail trader engagement drops and whales become more active, several possibilities arise for the asset’s trajectory.

What’s behind AVAX’s recent trend?

According to a report by Nansen, AVAX finds itself in a paradoxical market position caused by the contrasting actions of whales and retail traders.

The analysis highlights a recent 74% drop in Active Addresses—now at 414,234—and a 34% decline in transactions to 2,990,667, showcasing diminishing retail interest.

Source: Nansen

Interestingly, transaction fees have surged, with analysis suggesting that whales—likely institutions—are fueling this spike.

The fees generated on the blockchain over the last seven days have soared by 116%, reaching $243,280, a significant portion of which is attributed to these institutions.

Typically, increased whale activity bodes well for a market rally, signaling heightened confidence. AMBCrypto previously monitored the market impact of this trend.

What does whale presence mean?

That shift was further confirmed in spot markets.

In a 24-hour period, whale wallets absorbed $10.62 million worth of AVAX, closely trailing the year’s highest single-day accumulation of $10.63 million on the 6th of April.

Source: CoinGlass

This week alone, traders have bought $22.96 million worth of AVAX, indicating that buyers on centralized exchanges view the current price as a significant discount.

Source: Artemis

Furthermore, on decentralized exchanges (DEXs), AVAX trading activity is escalating. Currently, DEX volume has reached $161 million.

If this upward trajectory continues, the asset could reclaim its market high above $200 million, which may contribute to a stronger price performance for the asset.

How has AVAX reacted?

AVAX’s presence on the chart remains substantial, but it may encounter significant resistance at $26.47.

If this resistance holds, AVAX could revert to the ascending triangle pattern, highlighted by the purple line, and continue trading within this range.

However, a successful breakout above this level could propel the asset from $26.47 to $41.90—a 58% gain.

Source: TradingView

This outlook depends on two factors: if whale buying persists and spot markets continue to absorb the asset, then the upper target for AVAX seems more likely to be achieved.

But if retail investors continue losing interest, it may affect the price movement and increase the possibility of returning to the earlier trading pattern.