Avalanche (AVAX) surged above the upper line of a descending channel on May 13, resulting in a nearly 10% increase in its price. However, recent on-chain data suggests that this rally may not be sustainable.
Analysis of AVAX’s user activity over the past week indicates a decline in demand for the cryptocurrency, currently ranked as the 25th largest by market capitalization.
During this period, the daily count of active addresses engaged in AVAX transactions dropped by 18%. Additionally, there has been a decrease in new demand, with the number of new addresses created daily for AVAX trading decreasing by 2% in the past week.
Moreover, AVAX has seen a decrease in whale activity over the past month. Despite its price breaking above resistance on May 13 and continuing its uptrend, large investors in AVAX have been reducing their exposure. Over the last 30 days, transactions valued between $10,000 and $100,000 have declined by 26%, while transactions ranging from $100,000 to $1 million have seen a 17% decrease during the same period.
