Why AVAX Price Could Plummet This Week

Avalanche (AVAX) sounds the alarm as whales flee, causing a 3% drop in 24 hours. Accumulating bearish signals pose a threat to the token's future. Data analysis and outlook revealed.

Written by Charles Ledoux

Translated on June 9, 2025 at 15:02 by marie_redacteur

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Avalanche Alert : Whales Fleeing, the token on the Brink

Cryptocurrency investors, especially large holders known as “whales,” play a crucial role in market dynamics. However, an in-depth analysis of on-chain data reveals concerning signals for Avalanche (AVAX).

AVAX transactions chart — Source: IntoTheBlock

Data from the IntoTheBlock analytics platform shows a drastic decrease in transactions by large token holders. Transactions ranging from $100,000 to $1 million have plunged by 65%, while those between $1 million and $10 million have dropped by 95%.

Even more concerning, transactions exceeding $10 million have completely ceased, marking a 100% decline in high-value activities. This clear trend of institutional investors withdrawing significantly weakens the structural support for AVAX.

Bearish Outlook for AVAX

Beyond institutional investors, traders also seem to have lost confidence in the crypto. According to CoinGlass data, the market sentiment has significantly shifted bearish, with a high concentration of short positions above $21.39. The cumulative leverage for short positions has reached $10.25 million, surpassing the interest in long positions, estimated at only $8.43 million between $19.80 and $21.39.

AVAX liquidations chart — Source: CoinGlass

This scenario, coupled with a price drop of over 3% in the last 24 hours and a 22% decrease in transaction volume, indicates a bearish trend for Avalanche in the days ahead. Massive liquidations of long positions, with $189,000 wiped out in the past 24 hours alone, reflect the vulnerability of the bull market.

With a clearly bearish momentum and dwindling institutional investor confidence, AVAX appears poised for turbulent times in the near future. Investors will need to remain extremely vigilant and adapt quickly to this negative market shift.

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Charles Ledoux

Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.

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