Avalanche bears persisted this week, making AVAX one of the leading losers among the top twenty cryptocurrencies by market capitalization. Its current fall seems headed for May 12 lows retest, when the altcoin touched $22.31.
While publishing this content, Avalanche traded at $26.44, dropping over 8% within the past day. Though the altcoin hovers at a substantial premium from its recent monthly low, bears extending their dominance will see AVAX exploring the local lows and possibly crash to print another low.
Avalanche seems primed for dips into the oversold territory courtesy of AVAX’s downtrend within the past couple of days. An interesting case is that prices decline despite the MFI signaling accumulation.
Meanwhile, the Directional Movement Indicators affirmed bearish dominating the marketplace, though their momentum decreased.
Whales’ Mixed Signals
Whales with over $5 million supply hit 46.35% in May 2021. It recorded some upward moves before peaking near $47.04% by May 23. However, the metric dropped slightly. Therefore, confirming some whales might have tested the waters.
The brief decline in whale supply on May 23 matches the plunge in Binance derivative funding at the same timeframe. That indicates confidence loss by Avalanche investors in the derivatives marketplace.
Though AVAX appears more bearish, the Avalanche blockchain sees impressive NFT activity. The non-fungible token trade volume hovers at its lowest over the past four weeks.
Nevertheless, they stay at lucrative levels as they delivered over $22 million in NFT volumes on May 24. The volumes have deteriorated, considering the peak of $446 million early this month.
Avalanche price actions reveal more selling momentum for the alternative coin. Nonetheless, whale testing demand can signal their readiness to accumulate around the current value areas.
For now, Avalanche investors should prepare for more losses before uptrends emerge. Bears control the broad market. For instance, Bitcoin struggles to challenge $30,000, trading with a 1.9% 24hr loss at $29,186.77.
Extended actions beneath the $30K value area might translate to further price dips. On the other side, the global cryptocurrency market cap dropped 3.92% within 24hrs to $1.22 trillion.
Stay tuned for upcoming news.
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