Analysis of AVAX’s address distribution revealed significant growth in interest from retail and large investors. This suggested a potential bullish momentum for the AVAX price going forward.
Over the past year, the number of addresses with less than 100 AVAXs increased by 47.7%, reaching 9.6 million from 6.5 million.
This significant increase in retail investor participation often signifies widespread adoption and could lead to improved price stability and upward pressure from increased demand.
Meanwhile, the whale segment, which represents addresses with over 100,000 AVAXs, also saw growth from 101 to 133 addresses.
This presence of large investors indicated sustained confidence and provided a strong level of support for AVAX’s price, as their investment is for the long term.
Their continued accumulation and holding patterns suggested a strategic bet on AVAX’s future appreciation.
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Both dynamics—growing retail interest and continued whale involvement—point to a strong market structure.
The combination of growing retail engagement and continued whale activity could provide the foundation for sustained price appreciation in AVAX, especially if current market conditions persist.
AVAX price for the first quarter
The weekly price chart of AVAX was also bullish, after consolidating above the $29.15 support level. This formation, along with an inverted head and shoulders pattern, indicated a potential uptrend.
Notably, the chart highlighted the 200-week EMA providing bullish support around the $31 price point, acting as a springboard for further gains.
AVAX may see some fluctuations and a slight correction in early January, but may also hold a stable position above key support zones.
The chart indicated a bullish outlook from late January through February and March, with potential buying opportunities as prices could fall near $30.
This could potentially lead to higher trading levels in the coming months.
This anticipation is aligned with broader expectations of a market recovery, as investors could take advantage of lower prices to strengthen their positions, pushing the price up.
This strategic positioning and subsequent market response could indeed see AVAX reach new highs, holding onto its bullish setup.
AVAX daily active wallets
Additionally, Avalanche boasts a total locked-in value (TVL) of $1.42 billion, indicating robust platform involvement.
Daily transaction volume for Avalanche reached $169.48 million, along with a perpetrator volume of $19.56 million, suggesting active trading within the ecosystem. Namely, the network saw 68,006 active addresses, which reflects a healthy user base.
However, compared to Solana’s 4.37 million active wallets, one might initially think that Avalanche is significantly behind in user activity.
Avalanche’s smaller number of wallets may actually represent a more concentrated and potentially more engaged user base.
This nuanced understanding of wallet activity pointed to AVAX’s growing appeal, especially as the platform attracts new liquidity through on-chain play and other innovations aimed at finding untapped market potential.
Looking ahead, if these trends continue, along with increased fees and inflows, Avalanche is poised to strengthen its market position.
This dynamic, combined with strategic expansions and improvements in network capabilities, could drive AVAX’s price upward as the ecosystem matures and potentially becomes a more prominent player in the blockchain space.
This growth trajectory looks promising for Avalanche as it capitalizes on increasing user and developer activity.
