AVAX saw over $35 million in outflows from the exchange in a week, while the price remained stuck below the $10.45 resistance level.
This development indicates that supply on the exchange is contracting, but prices have yet to break out of the prolonged consolidation zone. At the same time, Derivative and liquidation data suggest the market remains cautious around the $9 to $10.45 mark.
- AVAX recorded outflows of over $35 million from the exchange last week.
- Prices are still fluctuating in the range of $8.21 to $10.45.
- Open Interest decreased by 7.27%, indicating that leverage is cooling down.
AVAX shares surged after leaving the exchange.
AVAX has seen over $35 million withdrawn from exchanges over the past week, reflecting a clearer accumulation trend in the market. A large wallet, 0x5D2, also withdrew nearly $2.2 million worth of AVAX from Coinbase , then transferred 12,820 AVAX and 2,560 AVAX to individual wallets.
Meanwhile, retail demand remained strong despite zero inflows into the Spot AVAX ETF throughout this period. The divergence between coin withdrawals from exchanges and ETF activity suggests that buying pressure is currently primarily coming from direct holders, rather than from institutional Capital flows via ETFs.
This divergence suggests that large wallets tend to accumulate and store assets, while liquidation on the exchange continues to decrease around the current price level.
AVAX price remains stuck in a consolidation zone.
AVAX continues to trade within a wide range between $8.21 and $10.45, with buying pressure repeatedly holding the support zone below. On the daily chart, the price is stable around $9.15 but has yet to break through the $10.45 resistance level.
The current structure leans more towards accumulation than a breakout. The RSI on the daily chart is at 44.82, below the neutral level of 50, indicating that the recovery momentum is not yet strong enough to confirm a short-term uptrend.
If AVAX regains the upper resistance zone with better liquidation , the price could head towards the macro resistance of $12.34. Conversely, failure to break above $10.45 will keep the market in a sideways trend.
Leverage in the Derivative market is cooling down.
AVAX 's Derivative activity weakened as Open Interest fell 7.27% to nearly $358.79 million. This development suggests that leveraged traders reduced their risk exposure while prices remained sideways.
The decline in Open Interest also reflects cautious sentiment following failed breakout attempts around resistance levels. When fewer large positions are opened, the market tends to be less volatile in the short term, but this also indicates a lack of confidence in the trend.
If prices return to higher levels and Open Interest increases again, the Derivative market could become more active. Until then, large positions are still being held cautiously.
Liquidation clusters are thickening near the current price level.
The liquidation heatmap data shows thick clusters of Short liquidations in the $9.30 to $9.50 range. This is an area that could cause faster price volatility if buying pressure pushes AVAX higher in the coming sessions.
The strongest concentration of liquidation is near $9.50, where heavily leveraged Short positions have recently accumulated. Conversely, lower liquidation is also forming around the $9.00 region as traders place positions around the current accumulation boundary.
Such a structure often causes a strong price reaction when one side of the liquidation is swept away. If the AVAX breaks above the upper liquidation zone, Short liquidation orders can accelerate the upward momentum.
Summary
AVAX is currently in an accumulation phase with decreasing supply on the exchange, but the price has yet to break through the $10.45 resistance zone. Derivative and liquidation data suggest the market is still awaiting clear confirmation before forming a new trend.
