Avalanche (AVAX), a smart contracts platform known for its fast transaction speeds, is generating excitement in the crypto world. As the recent price decline appears to be nearing an end, analysts are looking for a breakout that could propel AVAX to new highs. However, amid bullish whispers, experts advise a measure of optimism before investors jump on the bandwagon.
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The current price movement of AVAX has analysts attached to their charts. The coin is consolidating within a falling wedge pattern, a technical indicator that often precedes a bullish breakout. This consolidation suggests a healthy correction after the previous decline, explains prominent crypto analyst Worlds Of Charts.
Collapsing Falling Wedge Chart Pattern Looks Like A Healthy Correction Almost Completed Now Preparing for a Breakout and Preparing for a Bullish Continuation Awaiting a Move to 60-65$ in a Successful Breakout #Crypto #Avax pic.twitter.com/XafWguyk8w
– World Of Charts (@WorldOfCharts1) July 1, 2024
The falling wedge is a key signal that AVAX may be consolidating higher, the analyst said. Worlds Of Charts predicts a price rise to the $60-$65 range if the breakout occurs.
Supporting this sentiment, CoinCodex, a popular crypto prediction platform, offers an aggressive forecast. Their data suggests an impressive 227% upside for AVAX, pushing the price to a high of $91.46 on August 2, 2024.
On-Chain Metrics Reveal Investor Confidence
Meanwhile, on-chain data from IntoTheBlock paints a picture of investor confidence. More than half (51%) of AVAX owners are currently profitable, indicating a positive long-term outlook.
Further reinforcing this confidence, a large 45% of investors have held on to their AVAX for more than a year, showing commitment to the long-term vision of this project.
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The dominance of large investors, often called whales, in the AVAX ecosystem is another notable point. These whales hold a significant 72 percent of the circulating supply, contributing to a sense of stability. Whale activity can significantly affect price movements, and their continued investment in AVAX suggests they see value in the platform’s potential.
Limited Hope Application
The recent price dip also serves as a reminder of the inherent volatility in the crypto market. While the falling wedge pattern suggests a potential reversal, a confirmed breakout is yet to be seen. With careful analysis and a well-defined investment strategy,
An avalanche may be suitable for a significant climb. However, for now, investors are wise to exercise caution and avoid being swept away by the current state of bullish enthusiasm.
Featured image from Pexels, chart from TradingView
