Avalanche receives whales’ love, will it be enough to save AVAX from bears?

• AVAX was among the top 10 cryptos in terms of trading volume among the top 500 BSC whales.
• Performance on the price and metrics front remained promising over the last week.

Avalanche [AVAX] became popular among whales once more. As per WhaleStats, a Twitter account that posts updates regarding whale activity, it was recently revealed that AVAX was among the top 10 cryptos in terms of trading volume among the top 500 BSC whales. 

AVAX managed to remain a topic of discussion not only among whales but also in the crypto community at large, as the token made it to the list of cryptos by trending searches in the last seven days.

Read Avalanche’s [AVAX] Price Prediction 2023-24

These went in favor

A major reason behind whales’ interest and AVAX’s popularity can be its recent price action as its weekly chart was painted green. According to CoinMarketCap, AVAX’s price surged by more than 6% in the last seven days and at the time of writing, it was trading at $17.16 with a market capitalization of over $5.3 billion.

While the price action looked promising, several of the on-chain metrics supported AVAX throughout the last week as well. 

For instance, the four-week price volatility increased considerably, thanks to the surge. Both the DyDx and Binance funding rates spiked quite a few times last week, reflecting higher demand for AVAX in the derivatives market.

Negative sentiments around AVAX registered a gradual decline, which too was a positive signal. Furthermore, data from DeFiLama revealed that Avalanche’s TVL was increasing. Interestingly, Avalanche also recently

Source: Santiment

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Bulls vs Bears

While the metrics remained in AVAX’s favor throughout the week, things might take a U-turn soon, as suggested by a few market indicators. CryptoQuant’s data revealed that AVAX’s Relative Strength Index (RSI) was in an overbought position, which is a major bearish signal.

The Money Flow Index (MFI) also followed the RSI and was resting in the overbought zone. AVAX’s Chaikin Money Flow (CMF) registered a downtick and was headed toward the neutral mark.

Moreover, the MACD displayed the possibility of a bearish crossover soon, further suggesting a price decline in the coming days. Nonetheless, the Exponential Moving Average (EMA) Ribbon was still bullish as the 20-day EMA was above the 55-day EMA.

Source: TradingView