In Avalanche [AVAX] bears’ relentless pursuit where do investors stand

AVAX bears have continued their assault this week, making it one of the top gainers among the top 20 cryptos by market cap. Its current decline seems set for a retest of its May 12 low, during which it bottomed at $22.31.

AVAX was trading at $26.43 at the time of writing, after falling 8.09% in the last 24 hours. Its price is a notable premium from its last monthly or local low, which could result in a retest or perhaps even a new local low if the AVAX bears are to extend their dominance.

Source: TradingView

It looks like AVAX might dip back into the oversold territory due to its downmove over the past few days. An interesting observation is that despite accumulation, the price seems to be falling, which is signaled by the rise of its MFI indicator.

The directional movement indicator confirms that the bears are still in control, but it looks like the momentum is starting to wane.

Mixed signals from the whales

Bids from whales with more than $5 million bottomed out on May 21 at 46.35%. It then saw a slight uptrend before peaking at 47.04% on May 23. Since then it has fallen slightly. This suggests that some whales may have been testing the waters.

Source: Santiment

The slight drop in whale-held supply on May 23 correlates with a drop in the funding rate for Binance derivatives over the same period. This indicates a drop in AVAX investors’ confidence in the derivatives market.

While AVAX appears to be more detrimental, the Avalanche blockchain continues to register healthy NFT activity. Total NFT trading volume is currently at its lowest level in the last four weeks.

However, they remain at healthy levels considering that more than $22 million in total NFT volume was delivered on May 24th. However, NFT volume has taken a tumble considering it peaked at $446 million in early May.

AVAX’s recent price action suggests that the company is still under heavy selling pressure. However, the fact that some whales are testing demand could be a sign that they are poised to accumulate within their current price range.

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