Avalanche (AVAX) attracted renewed attention after a whale removed 238,651 tokens worth around $1.5 million from Bybit, reducing the supply held on the exchange.
The operation fueled speculation that large holders had begun accumulating during a prolonged downtrend rather than preparing for further selling.
These withdrawals often reflected a preference for moving assets to private wallets instead of keeping them readily available for trading.
Although a single transfer did not confirm a broader market shift, the scale of the pullback stood out amid recent activity.
As a result, market participants have been closely watching whether additional large drawdowns would emerge and strengthen the case for growing conviction among major AVAX holders.
Are traders moving more AVAX on exchanges?
Recent spot flow data showed inflows of $7.77 million and outflows of $6.23 million, leaving AVAX with a positive net flow of around $1.54 million.
Unlike sustained exchange withdrawals, positive net flows often suggest that more tokens were moved onto trading platforms than left. However, this paints a different picture from the whale retreat observed earlier.
While one large holder removed AVAX from Bybit, broader market participants moved additional tokens to exchanges.
Such behavior often reflected increasing business activity or repositioning preparations.
Although the benefit of capital inflows remained relatively modest, it indicates that market participants have not completely shifted towards aggressive accumulation.
Instead, foreign exchange activity suggested traders continued to evaluate opportunities on both sides of the market.
Why have Binance traders remained highly bullish on AVAX?
Although AVAX remains under pressure, top Binance traders have maintained a clear bullish bias.
Long accounts accounted for 66.42% of positions, while short accounts accounted for 33.58%, which translates to a Long/short ratio of 1.98. The data showed that experienced participants largely expected higher prices despite the recent weakness.
This positioning reflected confidence in the market’s ability to stabilize after weeks of selling pressure. However, long exposure at high concentration also created a potential risk.
If AVAX fails to recover, leveraged traders could face increased liquidation pressure. For now, traders’ positioning remains firmly on the upside.
However, price action has yet to fully validate this optimism, leaving market participants wondering whether buyers could eventually regain control.
Can AVAX defend a key support?
AVAX continued to trade within a descending channel that had guided price action lower since May. The altcoin was hovering around $6.17 while attempting to establish support above the key $5.90 region.
Previous bounces have appeared near this area, making it an important level for bulls to defend.
Higher on the chart, resistance remained visible around $7.00, with stronger resistance near $9.00.
Recent candles showed that sellers lost some control after pushing AVAX to channel lows earlier in June.
The Relative Strength Index climbed to 32.11 after dipping into oversold territory, indicating that selling pressure had eased compared to previous sessions.
Although the rally signaled improving conditions, the RSI remained below the neutral level of 50 and continued to reflect a broader, weaker trend.
Meanwhile, the Parabolic SAR remained above the price at 6.854, confirming that bearish control persisted throughout the higher time structure.
Nonetheless, the broader structure still favored the downside as the price remained below channel resistance.
If buyers reclaim channel resistance and strengthen momentum indicators, the recovery outlook could improve.
Until then, the broader downtrend will likely remain the dominant force in the market.
Final summary
- A whale removed $1.5 million from Bybit’s AVAX, reducing the supply held on the exchange.
- Avalanche bulls need to defend the $15.90 zone and reclaim channel resistance to strengthen recovery prospects.
