AVAX bears have maintained their assault this week, making it one of the top gainers among the top 20 cryptos by market cap. Its current downturn looks to be headed for a retest of its 12 May low, during which it bottomed out at $22.31.
AVAX traded at $26.43 at the time of writing after an 8.09% drop in the last 24 hours. Its price is a notable premium from its latest monthly or local low which might yield a retest or perhaps even a new local low if AVAX bears are to extend their dominance.
It looks like AVAX might be about to dip into the oversold zone once again courtesy of its downside in the last few days. An interesting observation is that the price seems to be dropping despite accumulation signaled by the uptick in its MFI indicator.
The Directional movement indicator confirms that the bears are still in control but it looks like the momentum is gradually decreasing.
Mixed signals from the whales
The supply held by whales with more than $5 million bottomed out at 46.35% on 21 May. It then registered some uptick before peaking at $47.04% by 23 May. It has dropped slightly since. Thus, suggesting that some whales may have been testing the waters.
The slight drop in supply held by whales on 23 May correlates with a drop in the Binance derivatives funding rate metric during the same period. This suggests a drop in AVAX investors’ confidence within the derivatives market.
While AVAX seems more downside, the Avalanche blockchain continues to register healthy NFT activity. The total NFT trade volume is currently at its lowest level in the last four weeks.
However, they remain at healthy levels considering that it delivered more than $22 million in total NFT volumes on 24 May. However, NFT volumes have taken a hit considering that they peaked at $446 million at the start of May.
AVAX’s latest price action suggests that it is still experiencing strong sell pressure. However, the fact that some whales are testing demand might be a sign that they are ready to accumulate within their current price range.