The Avalanche network has seen a significant shift with nearly $205 million worth of AVAX tokens locked in staking, amounting to 43% of the circulating supply. This reduces the number of tokens available for trading, particularly leveraged positions, and reveals strong bullish sentiment behind the scenes during a period of price consolidation.
Whale Activity Signals Growing Confidence
On-chain data shows Avalanche whales steadily increasing their orders in both spot and futures markets, even while the token trades sideways. This strategy suggests these large holders are positioning themselves ahead of a potential breakout, maintaining exposure without waiting for confirmed upward momentum. The simultaneous reduction in circulating supply through staking and rising whale orders form a compelling case for an upcoming price surge.
$6.90 Emerges as key Resistance
Technically, AVAX remains in a pennant pattern on the daily chart, holding steady since late June while buyers chip away at selling pressure. The price currently trades near the apex around $6.46 with the Stochastic RSI indicating it hasn't been oversold yet, hinting at further bullish potential.
Adding to this, a liquidity pool worth over $1 million clusters close to $6.90, making it a key level for market participants seeking to trigger a breakout. This liquidity zone serves as a magnet for Avalanche bulls aiming to push through this resistance, and it’s where the next wave of action could crystallize.
This is an informational update and not financial advice.
