Whales on the Run: Is AVAX About to Take a Tumble? 🐋💔

by
  • It appears that whale transactions exceeding the princely sum of $1 million have plummeted by a staggering 95%, which, if my calculations are correct, suggests a rather dismal outlook for institutional confidence in our dear AVAX.
  • The overall structure, much like a poorly constructed soufflĂ©, remains decidedly bearish, with lower highs and a rather conspicuous shift in market momentum.

Ah, Avalanche [AVAX], the beleaguered token, finds itself in a bit of a pickle, with bears frolicking across both spot and derivatives markets like they own the place.

Since the merry month of May, our dear token has been on a downward trajectory, and the latest data indicates that key support is slipping away faster than a butler at a scandalous party.

Here’s what the astute analysts at AMBCrypto have unearthed for your reading pleasure!

Whale transactions dip sharply

In light of the current market sentiment, it seems that our large holders and investors are making a hasty exit, further dampening the already gloomy outlook.

According to the on-chain analytics platform IntoTheBlock, there has been a sharp decline in whale transactions across all value ranges, which is rather like watching a grand ship sink.

Transactions worth $100K to $1 million have taken a nosedive of 65%, while those in the $1 million to $10 million bracket have dropped a staggering 95%. Meanwhile, transactions exceeding $10 million have come to a complete standstill, marking a 100% decline in high-value activity. Talk about a mass exodus!

This steep drop signals a wider retreat from our deep-pocketed investors, leaving AVAX’s structural support looking rather wobbly.

Traders’ eyes on short positions

It’s not just the crypto titans who are losing interest in our dear token; traders seem to be joining the ranks of the disenchanted as well.

Data from the on-chain analytics tool CoinGlass reveals that traders have gradually shifted their sentiment toward the bearish side, which is about as welcome as a rainstorm at a picnic.

AVAX is currently hovering around $20.28, but its derivatives map shows heavy short positioning stacked above $21.39. The Cumulative Short Liquidation Leverage has hit a whopping 10.25 million, far outstripping any long interest.

In contrast, a mere $8.43 million in long leverage is languishing between $19.80 and $21.39, hinting at some rather nervous long bets beneath key resistance.

AVAX has taken a tumble of over 3.10% in the past day, and its 24-hour trading volume has plummeted by 22% as traders have opted to sit on the sidelines, perhaps sipping tea and contemplating their life choices.

With a bearish divergence in momentum and waning whale confidence, the likelihood of another leg down is growing stronger, much like the anticipation of a well-timed punchline.

Heavy long liquidation, price crash imminent?

As a result of this price decline, traders who had been betting on long positions have found themselves facing liquidations, which is about as pleasant as a surprise visit from the in-laws.

In the last 24 hours, a staggering $290K worth of positions have been wiped clean, with $189K coming from long liquidations alone. This tilt shows our bulls losing their grip faster than a juggler with too many balls in the air.

On Binance, the Long/Short Ratio stood at 2.67 across accounts, but the actual top trader positions remained more cautious at 1.72, which is rather like a cat eyeing a bath.

When one combines all these on-chain metrics with the current market sentiment, it appears that AVAX is decidedly bearish and may be poised for a downward spiral in the coming days. Buckle up, dear readers!

Read More

2025-06-09 05:25