Avalanche [AVAX] Faces Bearish Pressure as Whale Transactions Plunge 65% to 100%

Avalanche [AVAX] is currently facing significant pressure, with bears gaining traction in both spot and derivatives markets. The token has been following a pattern of lower highs since early May, and recent data indicates that key support levels are slipping. This bearish trend is further exacerbated by a sharp decline in whale transactions, signaling a retreat from deep-pocketed investors and weakening AVAX’s structural support.

On-chain analytics platform reports a significant drop in whale transactions across all value ranges. Transactions worth between $100,000 and $1 million have fallen by 65%, while those ranging from $1 million to $10 million have dropped by 95%. Transactions exceeding $10 million have completely halted, marking a 100% decline in high-value activity. This steep drop in whale transactions suggests a broader retreat from institutional investors, further dampening the outlook for AVAX.

Traders are also shifting their sentiment towards the bearish side. Data from an on-chain analytics tool revealed that AVAX’s derivatives map shows heavy short positioning stacked above $21.39. The Cumulative Short Liquidation Leverage hit 10.25 million, far outweighing long interest. In contrast, only $8.43 million in long leverage sat between $19.80 and $21.39, hinting at nervous long bets beneath key resistance. This bearish divergence in momentum, combined with declining whale confidence, increases the probability of another leg down for AVAX.

Due to the price decline, traders who had been betting on long positions faced liquidations. Over the last 24 hours, $290,000 worth of positions were wiped, with $189,000 coming from long liquidations alone. This tilt shows bulls losing grip quickly. On Binance, the Long/Short Ratio stood at 2.67 across accounts, but actual top trader positions remained more cautious at 1.72. When combining all these on-chain metrics with the current market sentiment, it appears that AVAX is bearish and may see downside momentum in the coming days.