AVAX Price Teeters on Overbought Brink - But Whale Accumulation Signals Bullish Dominance
AVAX faces technical resistance as indicators flash overbought warnings, yet massive whale wallets continue loading up positions.
Whale Demand Defies Technicals
While retail traders eye exit signals, institutional-sized purchases keep flowing into Avalanche networks. These deep-pocketed investors appear unconcerned about short-term pullbacks, betting instead on ecosystem growth.
Market Mechanics vs. Big Money
Technical analysis suggests corrective patterns should emerge after recent parabolic moves. But when whales speak, charts often listen—their persistent accumulation creates underlying bid support that trivializes RSI readings.
Of course, traditional finance pundits will call this irrational—they still think blockchain is just for buying cartoon apes.
Institutional and whale flows
Institutional appetite for Avalanche (AVAX) is building momentum. On Sep. 22, AgriFORCE Growing Systems Ltd. announced plans to rebrand as AVAX One, pivoting away from agricultural technology to become the first publicly traded Avalanche-focused entity on Nasdaq.
The company intends to raise about $550 million through a mix of PIPE financing and equity-linked instruments, with the long-term goal of acquiring more than $700 million worth of AVAX tokens. Over 50 institutional investors, including Galaxy Digital and Kraken, are reportedly exploring allocations.
At the same time, whales are taking on leveraged bets. Blockchain analytics firm Lookonchain flagged two significant long positions on Sept. 23. One wallet opened a 5x leveraged long worth 514,906 AVAX ($17.2 million), already showing close to $1 million in unrealized profit.
Looks like whales are bullish on $AVAX.
0xb2ca opened a 5x long on 514,906 $AVAX($17.2M) 9 hours ago and is already sitting on a $920K unrealized profit.
Meanwhile, ogle (@cryptogle), advisor of @worldlibertyfi, opened a 10x long on 66,479 $AVAX($2.2M) an hour ago.… pic.twitter.com/WoFT1kt0Ik
Another account, tied to Ogle, an advisor to World Liberty Financial, opened a 10x long on 66,479 AVAX ($2.2 million). These moves suggest that well-capitalized players remain confident in Avalanche’s trajectory, despite the recent rally.
AVAX price technical analysis
From a technical standpoint, AVAX is pressing against the upper band of its Bollinger channel near $36.80, a level that now acts as resistance. With a relative strength index of 70.7, the token is on the verge of overbought territory. The stochastic oscillator is also high, suggesting short-term exhaustion.
Even so, trend strength remains intact. All major moving averages, from the 10-day EMA to the 200-day SMA, are flashing buy signals, confirming a broad-based bullish structure. The MACD is still in positive territory, which indicates that the bulls are still in control.
A break above $36.80 might clear the way toward $38 and possibly $40, while immediate support is located at $32.40 and $29.50.
