Avalanche’s [AVAX] price has been consolidating in recent weeks as whale activity has significantly slowed. Since early February 2025, the number of large transactions involving AVAX has decreased, causing the token’s price to remain stagnant below a critical trendline resistance. This shift in whale behavior raises concerns about the future price trajectory of AVAX, leaving traders and investors wondering if the token will dip further or find strength at the $22 support level.

Decline in Whale Activity Signals Potential for Price Weakness

Whale activity is often an important signal in the cryptocurrency market. These large transactions have the potential to cause significant price movements, especially in a relatively smaller market like AVAX. However, recent data has shown a drop in such activities, which has translated into a lack of substantial upward price pressure. As a result, AVAX has been consolidating under a key resistance level that has been in place since early August 2024.

The absence of these large players making significant moves suggests that AVAX may struggle to break through the resistance level and achieve any bullish momentum in the near term. Without the support from whale-driven transactions, the price might continue to move sideways or even face a decline. As a result, the token’s price is currently experiencing a period of indecision, making it harder to predict where the market will move next.

Impact of Price Consolidation Under Resistance

When a cryptocurrency consolidates beneath a significant resistance level, it often signals that a potential breakout or breakdown is on the horizon. Historically, such periods of price consolidation have been followed by substantial price movements, either upward or downward. However, with whale activity on the decline, the chances of a bullish breakout appear limited for now. Instead, the price may retest lower support levels, with the $22 level being a crucial zone to watch.

The $22 level is significant for AVAX as it has served as a strong support area in the past. A drop to this level could provide an opportunity for buyers to accumulate the token and potentially push the price higher. In these situations, traders may take long positions around this level, expecting a rebound in the price.

$22 Support: Potential for Accumulation and Trend Reversal

If AVAX fails to break through the resistance level and fails to gain enough buying pressure, a decline to the $22 support zone may be inevitable. This support level has historically been a strong accumulation point for investors, and its significance cannot be overstated. Should the price reach this area, it may attract long-term investors or whales looking to accumulate more AVAX before a potential trend reversal.

This consolidation phase may act as a necessary pause before a possible trend reversal. If buyers accumulate enough strength around the $22 support zone, a bullish resurgence could be in the cards. This would require a significant increase in buying volume to create the momentum needed to push AVAX out of its consolidation pattern.

Conclusion

The slowdown in whale activity for AVAX has left the token’s price range-bound, with the $22 support level now in focus. If AVAX struggles to gain momentum and breaks down below this level, it could see further declines. However, the $22 zone remains a critical point that could act as a foundation for a potential recovery. The coming weeks will be pivotal in determining whether AVAX can regain bullish momentum or if further consolidation and potential price declines are in store. Traders and investors should remain vigilant and watch for signs of accumulation and price strength at the $22 support level, as this may signal the start of a bullish reversal.