Avalanche (AVAX) Facing Potential Drawdown as Investor Support Wanes
In the coming days, Avalanche’s price could experience a downturn as the altcoin struggles to garner significant backing from its investors. This lack of support may hinder AVAX from breaking past the $45 mark, resulting in a period of consolidation for the cryptocurrency.
Are Holders Looking to Sell Their Avalanche?
- Avalanche’s price has been hovering below $40 for almost a month, a critical threshold to breach for a potential jump to $45. However, the likelihood of this breakthrough in the near future appears slim.
- The divergence in price daily active addresses (DAA) is currently signaling a sell-off, indicating a possible discrepancy between market valuation and network activity.
The lack of confidence among investors may prompt some AVAX holders to cash in on their profits, potentially leading to a bearish pressure on the altcoin’s price. This uncertainty is also evident in the low adoption rate of Avalanche, with only 16% of new holders actively participating in transactions on the network.
AVAX Price Prediction: Is $45 in Sight?
- At its current trading price of $37, Avalanche is struggling to break above $40, a recurring challenge that usually precedes a push towards the psychological barrier of $45.
- Considering the bearish indicators, AVAX might see a drawdown towards $32, translating to a potential 12% correction on the daily chart and continuing its consolidation phase.
If the resistance at $40 is breached, Avalanche could strive for a 14.8% surge towards $45, negating the bearish outlook and signaling a potential recovery for the cryptocurrency.
Hot Take: The Future Outlook of Avalanche (AVAX)
As an investor in the crypto space, it is essential to stay informed about the current trends and indicators affecting assets like Avalanche. By monitoring the levels of investor support, adoption rates, and price predictions, you can make more informed decisions about your investment strategy. Keep an eye on how AVAX performs in the coming days to determine the best course of action for your portfolio.
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