The analysis of AVAX’s address distribution revealed significant growth in retail and whale investor interest. This suggested potential bullish momentum for AVAX price going ahead.
Over the past year, the number of addresses holding less than 100 AVAX surged by 47.7%, reaching 9.6 Million from 6.5 Million.
This marked increase in retail investor participation often signifies broadening adoption and could lead to enhanced price stability and upward pressure due to increased demand.
Meanwhile, the whale segment, representing addresses with over 100,000 AVAX, also saw growth from 101 to 133 addresses.
This presence of large-scale investors indicated sustained confidence and provided a strong support level for AVAX price, as their investment is long-term.
Their continued accumulation and holding patterns suggested a strategic bet on AVAX’s future appreciation.
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Both dynamics—rising retail interest and steady whale involvement—indicated a robust market structure.
The combination of growing retail involvement and steady whale activity could provide the foundation for sustained price appreciation in AVAX, especially if current market conditions persist.
AVAX Price First Quarter Outlook
AVAX price weekly chart was also bullish, having consolidated above the $29.15 support level. This formation, coupled with an inverse head and shoulders pattern, indicated a potential uptrend.
Notably, the chart highlighted the 200-week EMA providing bullish support around the $31 price point, acting as a springboard for further gains.
AVAX could see some fluctuations and a mild correction in early January but could also maintain a steady position above the crucial support zones.
The chart suggested an optimistic outlook for late January into February and March, with potential buying opportunities as prices could dip near $30.
This could potentially lead to higher trading levels in the coming months.
This anticipation aligned with the broader expectation of market recovery, as investors could capitalize on lower prices to bolster their positions, driving the price up.
This strategic positioning and subsequent market response could indeed see AVAX reaching new highs, adhering to its bullish setup.
AVAX Daily Active Wallets
Additionally, Avalanche boasts a Total Value Locked (TVL) of $1.42 Billion, indicating robust platform engagement.
The daily transaction volumes for Avalanche reached $169.48 Million, coupled with perp volumes at $19.56 Million, suggesting active trading within the ecosystem. Notably, the network saw 68,006 active addresses, reflecting a healthy user base.
However, when compared to Solana’s 4.37 Million active wallets, one might initially think Avalanche lags significantly in user activity.
Avalanche’s lower wallet count might actually represent a more concentrated and potentially more engaged user base.
This nuanced understanding of wallet activity indicated AVAX’s growing appeal, particularly as the platform attracts new liquidity through on-chain gaming and other innovations aimed at finding untapped market potential.
Looking forward, if these trends continue, along with increasing fees and inflows, Avalanche is poised to strengthen its market position.
These dynamics, combined with strategic expansions and enhancements in network capabilities, could propel AVAX price upward as the ecosystem matures and potentially becomes a more prominent player in the blockchain space.
This growth trajectory looks promising for Avalanche as it capitalizes on increasing user and developer activities.
