- AVAX One repurchased 2.4 million shares as part of a $40 million buyback program
- Rising Open Interest and whale accumulation suggest growing investor interest
- Technical resistance near $10 remains a key level for Avalanche’s next move
Avalanche has slipped back into the spotlight lately, and the reason isn’t just price action. AVAX One recently repurchased about 2.4 million shares as part of its ongoing $40 million buyback program, a move that immediately caught the attention of investors across the ecosystem.
According to a recent update, the repurchase reflects growing confidence in the company’s long-term strategy. CEO Jolie Kahn described the decision as part of a disciplined capital deployment approach — basically signaling that the team believes the asset remains undervalued over time.
Moves like this often do more than just reduce supply. They tend to influence market psychology too. And right now, that sentiment shift seems to be spilling into the broader Avalanche ecosystem.
Institutional Interest Begins to Appear
Early market signals suggest that larger investors may already be positioning themselves around AVAX again. One indicator traders are watching closely is Open Interest in the derivatives market.
Over the past 24 hours, AVAX Open Interest has been inching upward. It’s not an explosive jump, but the steady rise matters. Increasing Open Interest usually means new capital is entering the market rather than old positions simply being closed.
When that type of activity appears during periods of consolidation, it can hint at institutional participation. Big investors often build positions gradually rather than jumping in all at once.
Whale Activity Supports the Accumulation Narrative
Another interesting signal is coming from on-chain order flow. Data tracking average spot order size suggests that large holders — the so-called whales — have been actively buying during the recent dip.
These investors appear to be placing larger orders across both the spot market and derivatives exchanges. That kind of accumulation pattern tends to look different from retail speculation.
Retail traders often chase momentum. Whales, on the other hand, frequently accumulate during quieter periods when prices are under pressure.
If that’s what’s happening here, it could mean some investors see current AVAX prices as a long-term entry zone.
Buyers Start Dominating the Futures Market
The derivatives market is also showing subtle signs of shifting sentiment. Recent order flow data indicates that buyers have begun dominating futures activity.
When buyer volume overtakes seller volume in derivatives markets, it often signals improving market confidence. Futures traders tend to react quickly to changing expectations, sometimes even before spot markets follow.
Historically, when this kind of shift happens, price rallies can gain stronger backing. It doesn’t guarantee an immediate breakout — markets rarely move that cleanly — but it can create the foundation for a trend change.
Technical Picture Still Shows Mixed Signals
Despite the improving sentiment in some metrics, the technical outlook for AVAX isn’t completely clear yet.
On the daily chart, the asset continues trading above a wedge consolidation pattern. That structure typically leans bullish, suggesting the broader trend hasn’t broken down.
However, there are still obstacles in the way.
AVAX remains below its exponential moving average, which often acts as a dynamic resistance level during downtrends. On top of that, the psychological resistance zone near $10 has continued to hold firm.
Until the price convincingly pushes through those levels, bullish momentum will likely remain limited.
AVAX Market Enters a Transition Phase
For now, Avalanche appears to be sitting in what traders often call a transition phase. The market hasn’t fully shifted into a clear uptrend, but several signals are beginning to lean slightly more positive.
Rising Open Interest, steady whale accumulation, and growing buyer dominance in derivatives markets all suggest that investor confidence may be slowly rebuilding.
If AVAX manages to reclaim its EMA and break through nearby resistance levels, that shift in sentiment could translate into stronger price momentum.
But until then, the market is still watching — cautiously.
