- Avalanche (AVAX) is facing significant pressure as whale transactions plummet and traders increasingly favor short positions, signaling weakening confidence and bearish momentum.
- With heavy long liquidations underway, AVAX risks a deeper price decline unless strong support emerges soon.
Whale Exodus Signals Institutional Doubt
Avalanche (AVAX) is flashing red alerts as large-scale investors appear to be jumping ship. Whale transactions valued over $1 million have plunged by a staggering 95%, with the highest-value transactions over $10 million coming to a complete halt, according to IntoTheBlock. This dramatic drop indicates a severe lack of institutional confidence and suggests a potentially rocky road ahead for the token.
Adding fuel to the fire, transactions in the $100K–$1 million range have also dropped by 65%, reinforcing fears that deep-pocketed players are losing interest. This decline in whale activity weakens AVAX’s structural support and signals broader market retreat.
Traders Turn Bearish as Short Bets Pile Up
It’s not just whales retreating — retail and professional traders alike are shifting bearish. Data from CoinGlass shows a heavy concentration of short positions around the $21.39 level, while long interest between $19.80 and $21.39 remains tepid at best. In fact, $10.25 million in short leverage dwarfs the $8.43 million in long leverage, indicating a clear sentiment shift toward downside expectations.
Over the past 24 hours, AVAX has dropped more than 3.1%, and trading volume has nosedived by 22% as market participants adopt a wait-and-see stance.
Also read: Shiba Inu (SHIB) Burn Rate Skyrockets 5762% — Is a Price Breakout Coming Soon?
Liquidation Cascade Looms as Bulls Lose Grip
With bulls losing control, long positions are beginning to suffer. In the past day alone, $290,000 worth of positions were liquidated — $189,000 of which came from long trades. This tilt in liquidation points to rising bearish momentum and waning bullish conviction.
Even though Binance’s Long/Short Ratio stands at 2.67, a deeper look reveals that top traders are more cautious, holding a ratio closer to 1.72.
What’s Next for AVAX?
All signs point to a bearish continuation for AVAX in the short term. With whales gone, traders shorting, and long positions getting wiped out, the token appears vulnerable to further price erosion. Unless AVAX finds strong support soon, this could be the calm before a much deeper crash.
AVAX is on thin ice — and with institutional confidence vanishing and traders turning bearish, the next move could be a hard drop.
