AVAX is going through a difficult week.
The altcoin continued its slide over the past 24 hours, losing 14% of its value as selling pressure swept the crypto market. However, what was surprising was that this decline occurred despite high whale activity on the network.
Normally, an increase in whale participation is considered a positive sign. But so far this has not translated into price support.
On the daily chart, the altcoin broke out above its key monthly support zone at $8.05 – a level that has held since February. The token’s price action fell so aggressively that at press time it was below key exponential moving averages.
Is the market strongly bearish?
One reason could be the growing dominance of short sellers.
More than 70% of positions at the time of publication were short positions – evidence that most traders expect the decline to continue. This type of imbalance can create additional pressure, especially when buyers struggle to regain momentum.
Right now, the market sentiment around AVAX is simple: traders are more interested in protecting capital than seeking a rebound.
Big money might be less interested
That’s another concern.
The Avalanche Network’s total open interest is down to around $159 million at press time. This implied that fewer traders would be willing to keep money in AVAX-related positions.
In most cases, a drop in Open Interest during a selloff indicates low conviction and declining participation. Now youThis does not necessarily mean that institutions are abandoning AVAX. However, this hints at a significant cooling in enthusiasm compared to previous weeks.
Could whales sell?
This is the question many traders are currently asking themselves.
Whales have been active on the network, but the price has continued to fall. There is, however, no clear evidence of panic selling. Still, the lack of aggressive accumulation means large holders may not rush to buy this dip just yet.
As it stands, the Bears remain firmly in control. Until buying activity resumes and market sentiment improves, AVAX may struggle to break out of its dominant downtrend.
Final Summary
- AVAX lost 14% of its value in just 24 hours.
- More than 70% of its traders are betting on the continuation of the downtrend.
