Revolut sold 177.62K AVAX worth around $1.2 million through Coinbase, raising questions about the company’s balance sheet positioning.
THE transaction suggested that some companies could reallocate their capital, realize gains or reduce their exposure to crypto as part of broader cash flow strategies. However, a single sale failed to establish a broader trend among corporate shareholders.
Instead, he pointed out that cash management decisions could introduce new supply to the market without reflecting a broader change in investor sentiment.
If more companies follow a similar approach, foreign exchange-related transfers could increase and gradually influence available spot liquidity.
However, additional corporate activity would be required before concluding that balance sheet repositioning has become a sustained institutional trend.
Foreign exchange demand continued to absorb new supply
Spot market activity painted a more balanced picture despite Revolut’s high-profile transaction.
Net exchange flows stood at -$1.04 million, showing that withdrawals still exceeded deposits on the exchanges tracked.
This reading suggests that buyers continued to remove AVAX from exchanges instead of preparing tokens for immediate sale.
However, the negative net flow also indicates that Revolut’s transaction did not trigger widespread currency inflows from other large holders.
Such behavior has eased concerns about an emerging wave of corporate sales.
Even though a notable sell-off hit Coinbase, the spot market as a whole absorbed the available supply without producing a significant change in currency balances.
If net flows remain negative in the coming sessions, they could continue to limit immediate selling pressure and support a more stable market structure despite isolated cash-related trades.
Why Leveraged Bulls Ignored Corporate Sales
Derivatives traders maintained a particularly optimistic outlook even after Revolut completed its sale.
Binance Top Trader’s Long/Short ratio reached 2.82, while 73.84% of accounts remained long, compared to 26.16% holding short positions. These figures show that indebted participants continue to expect higher prices despite the emergence of business sales.
However, such aggressive positioning also increases the risk of liquidation if other government bond holders decide to reduce their exposure.
Significant long positioning often leaves the market vulnerable, as a sharp decline could force leveraged buyers to quickly unwind their positions.
Still, traders showed no signs of abandoning their bullish outlook.
If corporate sales remain constrained, leveraged long positions could continue to support prices. Otherwise, another large FX transfer could trigger a broader leverage reset before buyers regain control.
Can AVAX break through resistance after its trend reversal?
Avalanche (AVAX) rebounded steadily after defending the $5.88 support level and traded near $6.85, leaving the token just below the psychological resistance of $7.00.
The rally strengthened after buyers regained control of June’s sharp decline and continued to post higher lows.
Meanwhile, the MACD maintained a bullish crossover, with the MACD line remaining above the signal line as the green histogram bars continued to expand.
The Parabolic SAR also remained below price, confirming that the prevailing trend had reversed in favor of buyers.
However, $7.00 remained the first hurdle before $8.22 became the next significant resistance.
If buyers push AVAX above $7.00 with sustained demand, the rally would likely continue towards $8.22.
Otherwise, a rejection at this level could remove the token to retest support before another breakout attempt.
Final summary
- Corporate sales remained isolated as FX outflows continued to effectively absorb fresh AVAX supply.
- Bullish technical signals supported the rally, although $7 remained the immediate obstacle to the market breakout.
