Here’s Why Avalanche Price Fell Despite $4.63M AVAX Buy

Key Insights

• Avalanche price dropped 5% despite a $4.63 million whale accumulation from Coinbase.
• Avalanche price continues to face resistance between $9.80 and $10.00.
• A 23% drop in AVAX burn rate weakened supply pressure, limiting upside momentum.

Avalanche price declined over 5% in the past 24 hours even as a large investor accumulated over 475,000 AVAX tokens. The buying activity, valued at $4.63 million, came through Coinbase transactions before funds moved into a custodial wallet. Despite this accumulation, Avalanche price failed to hold near the $10 resistance level, reflecting weak follow-through demand.

The drop occurred alongside mixed on-chain signals. While transaction activity on Avalanche’s C-Chain increased, the token burn rate declined sharply. This combination reduced supply pressure but failed to support price strength, leaving Avalanche price within a broader consolidation range.

Whale Accumulation Fails to Lift Avalanche Price

On-chain data from Arkham showed that a single investor purchased 475,000 AVAX tokens in three transactions over 18 hours. The largest transaction involved 256,530 AVAX, valued at approximately $2.5 million. Two additional transactions accounted for 186,060 AVAX and 1,850 AVAX.

After the purchases, the investor withdrew the tokens from Coinbase into a custodial wallet, indicating long-term holding intent. The wallet now holds over 2.6 million AVAX tokens, with a total valuation exceeding $25 million.

Such withdrawals typically reduce available exchange supply and support price stability. However, Avalanche price did not respond positively. Instead, it declined from near $10 to around $9.41, showing that short-term selling pressure offset the accumulation.

The lack of immediate upside suggests that broader market conditions and resistance levels remain dominant over isolated whale activity.

Avalanche Price Prediction: AVAX Trading In A Range

Instead of the whale activity sparking a move to the upside, Avalanche price fell from around $10 to $9.41 on the day. However, the altcoin appeared to respect a rising trendline support, though the price could fall to just above $8.50 breaking this trendline.

The price action outlook suggested that Avalanche price was in a correction phase following an uptrend that started as April kicked off. Notably, the price movement has been lagging over the past two weeks, suggesting a consolidation.

AVAX cryptocurrency appeared to be declining, either toward $9 or toward the demand zone at $8.50. This decline occurred after meeting resistance around $10, indicating the price needs to gather more volume to break past that level.

However, the Avalanche price may turn at key pivot points between $8.50 and $10, or it may consolidate to gather liquidity. Probably, the reason the altcoin was declining was that whales continued to pump more capital into AVAX. But there was more to this lag in price.

Is a Reduction in Burn Rate Causing Price Lag?

As per the chain activity, some metrics were performing while others were declining. The results indicated mixed sentiment in the altcoin.

For instance, the number of transactions on C-Chain increased by 4% from 2.264 million to 2.355 million. Avalanche’s C-Chain led, followed by Gasmen, Moneymen, among others. This indicated increased market volatility, but prices remained low.

This is because the burn rate reduced from 811 AVAX to 621 AVAX which was collected from gas fees. The data indicated burn rate of Avalanche had reduced by more than 23% in 24 hours. The results meant supply-tightening dynamics were taking a hit.

In summary, the Avalanche price declined by 5% despite a massive $4.60 million AVAX purchase by a whale, driven by a reduction in the burn rate.

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