Avalanche (AVAX) Sees Rising Whale Accumulation: What It Means for the Price

Key Takeaways

• AVAX price has surged 10% in the past week amid VanEck’s ETF proposal and a $2 million investment from WLFI.
• Large holders have accumulated 4.7 million AVAX, worth $90 million in two days, supporting a potential increase.
• A falling wedge pattern, a bullish MACD crossover, and a rising CMF spike suggest a continued uptrend for AVAX.
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Avalanche (AVAX) is one of the few top-20 cryptos that has shown strength in the last seven days. During this period, AVAX price has increased by 10%.

This price surge followed positive developments related to the token. Asset management giant VanEck proposed an AVAX exchange-traded fund (ETF), and shortly after, World Liberty Finance (WLFI) invested $2 million in the cryptocurrency.

However, there is more to the token than just these two events. In this analysis, CCN reveals how some key stakeholders are accumulating amid the 27% 30-day drop and what lies ahead for the price.

AVAX Whales Add $90M in Two Days

On Sunday, March 16, the AVAX large holders’ netflow was less than 290,000. According to data from IntoTheBlock, the same metric has risen to 5 million as of this writing.

The large holders’ netflow looks at the activity of addresses holding between 0.1% to 1% of the total circulating supply. When this metric increases, it means whales have bought more tokens compared to the value sold, which is bullish.

On the other hand, a decrease in the net flow indicates rising distribution over accumulation. Therefore, the increase means AVAX whales have added about 4.7 million tokens to their holdings within the last two days.

At AVAX’s current price, this accumulation is worth nearly $90 million. Historically, increased whale activity has preceded notable price upswings.

Therefore, if AVAX continues to see this buying pressure, its value could climb higher in the short term.

Traders Bet on More Upswing

Furthermore, traders appear to share the same bias based on the funding rate reading. The funding rate is the cost of holding an open position in the derivatives market.

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When it is negative, it means that short (sellers) positions are dominant and the broader market sentiment is bearish. The chart below shows this was the case between March 15 and 17.

However, today, the funding rate has turned positive, indicating that long (buyers) have more exposure to the token. If this trend continues, it could put more upward pressure on AVAX’s price.

AVAX Price Targets $24 Return

Similar to the signs from the on-chain perspective, the technical standpoint also seems to agree that AVAX’s price is in line for an extended rally.

On the daily chart, CCN observed that AVAX had formed a falling wedge, with the price hitting lower highs and lower lows.

Typically, the falling wedge is a bearish to bullish reversal, and several indicators seem to support the uptrend.

For example, the Moving Average Convergence Divergence (MACD) has risen to the positive region.

The image below also shows that the 12-period Exponential Moving Average (EMA) — in blue, has flipped the 26 EMA (orange).

This position indicates a bullish trend. Likewise, the Chaikin Money Flow (CMF) has crossed the zero signal line, validating the bullish outlook and buying pressure.

Based on this current position, AVAX’s price might rise to the 0.786 Fibonacci level near $24.06. If sustained, this could trigger a rally in the $30 direction.

However, if selling pressure comes into play, this prediction might not happen. In that scenario, AVAX might collapse toward $15.40.