Avalanche [AVAX] is secretly preparing the groundwork. This could lead to the potential launch of a powerful bullish trend.
Based on the data from the latest Staking Statistics, almost $204.77 million in AVAX has been staked so far, comprising about 43% of the token’s entire circulating supply.
In other words, a large amount of tokens has become inactive because they are no longer free for leveraged trading. Consequently, this implies that bulls remain quite positive amid the current consolidation period.
Things get even more interesting if we consider the supply cap. This becomes clearer in combination with whale activity.
Large investors are increasing their exposure
According to the recent on-chain derivatives data, Avalanche whales are continuing to accumulate more orders at the current trading price. This is happening across both the Spot and Futures markets.
The trend suggests AVAX’s big players are not waiting for a confirmed breakout before adding exposure. Instead, they are placing the orders even when the token continues to range.
The synchronous supply reduction and whale orders rising across the Avalanche network point to a strategic bullish move. This could amplify the current price action momentum in the near future.
The chart is approaching a key level
On the daily chart, AVAX price action continues to consolidate, but the broader structure remains intact.
AVAX has spent recent sessions holding its pennant pattern consolidation since late June while buyers gradually absorb selling pressure.
At press time, the token’s price action was trading at the pennant apex at $6.46, indicating that a breakout could be ultimately on the horizon. More so, given that the token’s Stochastic RSI is yet to hit an oversold region.
If that trend continues, the market attention will shift to the next major resistance level at the $6.90 resistance level.
According to the latest Liquidation Heat Maps data, a liquidity pool worth more than $1 million is clustered around the $6.9 price level.
The liquidity cluster affirms the price level as a key target for Avalanche bulls, as market players always align to hunt the key liquidity zone.
Final Summary
- Nearly $204.77 million worth of AVAX is now staked, accounting for almost half of the circulating supply.
- A $1 million liquidity cluster near $6.90 has emerged as the next major target if bullish momentum persists.