Whales are bullish on AVAX, but is the current rally just hype?

Key Takeaways

Are whales and leveraged traders turning bullish on Avalanche?

Yes, major leveraged positions totaling over $19M show growing confidence in AVAX’s potential.

Is AVAX at risk of a short-term pullback?

With RSI above 71 and weakening volume, AVAX may face a cooldown if it fails to break past $35.

Big wallets have been moving, and Avalanche [AVAX] is back on the radar.

Some call it whale games, others would see it as momentum growing. So, is it just white noise, or is AVAX finally ready for brighter days ahead?

Big bets light up AVAX Futures

Whale trades have put Avalanche back on the map.

Source: X

Address 0xb2ca opened a 5x long on 514,906 AVAX ($17.2M) on the 23rd of September and was already sitting on an unrealized profit of $920K at the time of writing.

At the same time, @cryptogle, advisor to World Liberty Finance, jumped in with a 10x long on 66,479 AVAX ($2.2M).

Source: X

These leveraged moves show confidence building fast. But is it calculated conviction or risky overexposure? That’s the answer everyone’s looking for.

Derivatives data shows good signs

Aggregated OI has stayed firmly above $1B; a rise in leveraged positioning since the 18th of September.

Despite the increase, the average Funding Rate held steady at 0.0097, so there’s a tilt toward longs without an overheated bias. This balance means that traders are leaning bullish, but not yet in dangerous territory.

Source: Coinalyze

AVAX’s Futures market seems to be building a base of support that could sustain momentum… if spot buyers join the move.

Overbought pressure?

Adding to the Futures story, AVAX’s daily chart showed momentum building fast.

Source: TradingView

The token traded at $34.45 at press time, close to its recent highs. The RSI stood at 71.37; an obvious indicator of overbought conditions.

Meanwhile, the MACD line (2.48) stayed well above the signal line (2.10), confirming the bullish momentum.

Volume trends, however, have begun to weaken, which means that the follow-through from buyers may be slowing.

Overall, the data proves strong short-term momentum but also the risk of a cooldown if AVAX fails to push convincingly past the $35 mark.