- Whale transactions over $1 million dropped more than 95%, signaling weakening institutional confidence in AVAX.
- Overall structure remains bearish, with lower highs and a clear shift in market momentum.
Avalanche [AVAX] is under strain, with bears gaining ground across spot and derivatives markets.
The token has continued its pattern of lower highs since early May, and the latest data shows key support slipping.
Here’s what AMBCrypto analyzed for you!
Whale transactions dip sharply
Given the current market sentiment, large holders and investors seem to be exiting their positions, further dampening the outlook.
On-chain analytics platform IntoTheBlock reports a sharp decline in whale transactions across all value ranges.
Transactions worth $100K to $1 million have fallen by 65%, while those ranging from $1 million to $10 million have dropped 95%.
Meanwhile, transactions exceeding $10 million have completely halted, marking a 100% decline in high-value activity.
Source: IntoTheBlock
This steep drop signals a wider retreat from deep-pocketed investors, weakening AVAX’s structural support.
Traders’ eyes on short positions
So far, it’s not only crypto giants who have been losing interest in the token, but traders as well.
Data from the on-chain analytics tool CoinGlass revealed that, over time, traders have shifted their sentiment toward the bearish side.
AVAX hovered near $20.28 at press time.
However, its derivatives map shows heavy short positioning stacked above $21.39. The Cumulative Short Liquidation Leverage hit 10.25 million, far outweighing long interest.
In contrast, only $8.43 million in long leverage sat between $19.80 and $21.39, hinting at nervous long bets beneath key resistance.
Source: CoinGlass
AVAX dropped over 3.10% in the past day, and its 24-hour trading volume fell 22% as traders moved to the sidelines.
With a bearish divergence in momentum and declining whale confidence, the probability of another leg down grows stronger.
Heavy long liquidation, price crash imminent?
Due to this price decline, traders who had been betting on long positions ended up facing liquidations.
Over the last 24 hours, $290K worth of positions were wiped, with $189K coming from long liquidations alone. This tilt shows bulls losing grip, fast.
On Binance, the Long/Short Ratio stood at 2.67 across accounts, but actual top trader positions remained more cautious at 1.72.
Source: CoinGlass
When combining all these on-chain metrics with the current market sentiment, it appeared that AVAX is bearish and may see downside momentum in the coming days.
