Journalist
Posted:
- AVAX whale activity is slowing down, leading to reduced large transactions volume and price consolidation.
- A drop to the $22 support level could provide the needed accumulation for a potential trend reversal.
Avalanche’s [AVAX] whale activity has slowed down since the start of this month.
Large transactions, which are known to move prices, have fallen by a significant margin, leading AVAX to consolidate below a key trendline resistance since the 6th of February.
The fact that large players are not making big moves raises questions about the token’s trajectory in the short term. Will this lead to a further drop to the $22 support level?
Source: IntoTheBlock
AVAX price consolidate under a key resistance
AVAX has been in a close consolidation beneath a major trendline resistance that has been in hold since early August, indicating that there is little bullish momentum.
Historically, significant price actions have followed such consolidations. With whale activity on the decline, the token may struggle to break this resistance.
Instead, the price would retest lower support levels, with $22 being a significant zone. This level has acted as a solid buildup area for a long time, possibly gaining enough bullish momentum to change the trend.
Source: TradingView
Could $22 provide a path to bullish revival?
If AVAX fails to gather enough buying pressure to breach the trendline resistance, a drop to $22 could be on cards. This level could serve as an accumulation zone where big players could take their long positions.
For AVAX to change its trajectory the altcoin needs to accumulate sufficient bullish momentum and $22 seems to be the nearest launchpad for a bullish reversal.
Although the current market conditions suggest a possible drop to $22, patience is required. This could be the reversal area for AVAX, where buyers can take long positions and push prices higher.
