Smart money investors are making substantial profits from AVAX and are still holding their positions.

According to Gate News bot, as reported by AmbCrypto, insights from Nansen indicate that despite the overall fall of 13% in the price of Avalanche (AVAX), smart investors have still made considerable profits. The report shows that these investors achieved profits of up to 375% during this period, with unrealized gains from 11 positions nearing $1 million.

With such generous returns, these investors usually sell their stocks and cash out. However, as of the time of writing, they are still continuing to hold their Position. In contrast, retail investors have taken a different approach and are selling off their assets.

According to CoinGlass, retail investors have begun to cash out, taking profits from the recent price increase. At the time of writing, retail spot investors have reversed their buying behavior from the previous week (when they accumulated AVAX worth $11.9 million) and have now started to sell.

In just the past 24 hours, these investors sold AVAX worth $821,000, putting downward pressure on the price.

Similarly, retail traders in derivatives have started to open short positions, betting that the price of AVAX will fall further. This trend is confirmed by the weighted funding rate of open contracts, which is an indicator used to analyze sentiment in the derivatives market, indicating whether traders are buying or selling.

As of now, the indicator has fallen into negative territory, after maintaining a positive value in the previous days, with a reading of -0.0022%. The bearish stance of retail investors in both spot and derivatives highlights the prevalent negative sentiment in the AVAX market.