Avalanche (AVAX) Bulls Hold Firm at $10 Resistance Amid Selling Pressure
The price of Avalanche (AVAX) has been consolidating around the $10 range, with bulls and bears battling it out at the critical support level. However, on-chain data analysis suggests that bullish Avalanche whales are actively absorbing the inflationary pressure caused by the recent token unlock event. These large holders have been increasing their holdings and are likely to continue doing so, which could prevent a prolonged price correction for AVAX.
Strategic Investors May Capitalize on Negative Sentiment
As the token unlock event approached, the sentiment within the Avalanche ecosystem turned negative. This negative sentiment, as measured by the Weighted Sentiment metric, could present an opportunity for strategic investors to buy the dip. By interpreting the panic as a favorable buying opportunity, these investors could potentially trigger a price recovery.
AVAX Price Prediction: Consolidation Above $9
If the bullish whales continue to capitalize on the negative sentiment and absorb the bearish pressure, AVAX’s price is likely to remain above $9. The In/Out of Money Around Price data also supports this prediction, indicating that a significant number of investors bought AVAX at the minimum price of $9.83 and could provide strong support if the large holders continue to buy. However, if the bears can push past the $9 support level, intense inflationary pressure may cause AVAX’s price to slip below $9.
Hot Take
Despite the selling pressure and negative sentiment, the efforts of bullish Avalanche whales to absorb inflationary pressure and the potential buying opportunity for strategic investors could prevent a prolonged price correction for AVAX. If these trends continue, AVAX’s price may consolidate above $9 and potentially reclaim the resistance level at $13.
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