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Avalanche (AVAX) Shows Strong Momentum but Volume Declines
Avalanche (AVAX) has returned to the spotlight, driven by notable activity from large holders. Some analysts describe these moves as “whale games,” while others see growing momentum signaling potential positive trends. The key question remains: is this sustained strength or mere noise?
Large Whale Positions Boost AVAX Futures
Significant leveraged bets have caught market watchers’ attention. On September 23, the address 0xb2ca opened a 5x long position on 514,906 AVAX—valued at approximately $17.2 million—and was reportedly sitting on an unrealized profit of $920,000 at the time of writing. Similarly, advisor @cryptogle from World Liberty Finance took a 10x long position on 66,479 AVAX (about $2.2 million).
These substantial leveraged positions suggest a rapidly building confidence among traders. However, whether this reflects cautious conviction or risky overexposure remains uncertain.
Futures Data Shows Balanced Bullish Sentiment
Derivative metrics indicate a positive outlook for AVAX. Open Interest (OI) has consistently stayed above $1 billion since mid-September, reflecting increased leveraged positioning. Despite this rise, the average funding rate remained steady at 0.0097, indicating a mild tilt towards longs without excessive overheating.
This equilibrium points to cautious bullishness in the futures market, potentially setting a support base—provided spot market buyers contribute to the momentum.
Overbought Signals Emerge Amid Weakening Volume
Technical indicators suggest short-term strength but also warn of possible retracement. At press time, AVAX traded near $34.45, close to recent highs. The Relative Strength Index (RSI) stood at 71.37, signaling overbought conditions. The Moving Average Convergence Divergence (MACD) also confirmed bullish momentum with the MACD line above the signal line.
