AVAX has recorded outflows in excess of $35 million during the week due to the increased accumulation across the entire market.
Whale wallet 0x5D2 on its own Withdrawal Coinbase received nearly $2.2 Million worth of AVAX before it distributed 12.82K, 2.56K, and 3.04K AVAX to separate wallets.
Retail demand also continued to be active, despite inflows into Spot ETF AVAX remaining at $0 for the entire period.
This divergence The market reflected a cautious institutional position, while smaller participants continued to absorb supply from the exchanges. In response, the circulating liquidity of exchanges remained at current levels.
The aggressive nature of the outflows is usually a reflection of growing selling interest, not immediate intent.
AVAX, can you reclaim that $10.45 threshold?
AVAX Continued trading within a wide consolidation range between $8.21 resistance and support zone. The lower price boundary was repeatedly defended by buyers after the market rejected further downward movements in February and march.
AVAX’s daily chart showed that it was stabilizing at $9.15 and avoiding a breakdown below its range bottom. The asset was still trapped below the $10.45 key resistance. This prevented a bullish development from taking place.
The price structure still showed compression, rather than an expansion over higher time frames. On the daily timeframe, the Relative Strength Index was still below neutral 50 and printed 44.82.
After several failed attempts to recover near resistance, this reading indicated that bullish strength has been weakened. AVAX might try to reach the $12.34 resistance if the buyers successfully reclaim upper resistance.
Up until then, the current structure continued to favour sideways movement within the larger consolidation zone.
AVAX leverage is reduced by traders
On consolidation, the derivatives market activity declined as open interest fell 7.27% from $358.79 to almost $358.79. The reduction in AVAX’s price showed that leveraged traders were reducing their exposure, while AVAX was still trapped within its range.
This decline is also due to a lower level of speculative activity after the recent failures near resistance. In contrast to aggressive trends, both bullish as well as bearish participants on derivatives platforms are currently hesitant.
Because fewer traders hold oversized positions, a reduction in leverage can temporarily reduce volatility.
The shrinking of Open Interest suggests that conviction levels are also limited at current levels. In the event that prices recover higher resistance and OI grows again, a more directional market could be expected.
The liquidation clusters form at the near-resistance.
The heatmap of liquidation data shows dense clusters between $9.30 and $9.95. The zones that are most likely to be volatile in the future if prices rise due to buyers’ pressure.
Near $9.50 is where the strongest concentration of liquidity was found, as this is the price at which large leveraged positions in shorts had recently accumulated.
As traders continued to position themselves around the consolidation zone, the downside liquidity continued to build around the $9 support area.
These clustered structures of leverage can often cause sudden price changes once liquidity starts to trigger rapidly.
AVAX was relatively stable around $9.15. However, the liquidation pressure on both ends of the market continued to grow. In the event that buyers are pushed through to upper liquidation zones, a short sale could increase price movements upwards towards higher resistance areas.
Final Summary
- AVAX Exchange supply continues to decrease as whales continue to move tokens into personal wallets.
- While the price of gold remained trapped beneath $10.45, traders reduced their leveraged position.
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Source: ambcrypto.com
