Avalanche (AVAX), the smart contracts platform known for its fast transaction speeds, is stirring excitement within the crypto world. With a recent price dip seemingly nearing its end, analysts are eyeing a possible breakout that might propel AVAX to latest highs. Nevertheless, amidst the bullish whispers, experts advise a dose of cautious optimism before investors jump on the bandwagon.
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A Consolidation Phase Hints At Breakout Potential
The present price movement of AVAX has analysts glued to their charts. The coin is consolidating inside a falling wedge pattern, a technical indicator that always precedes a bullish breakout. This consolidation suggests a healthy correction after a previous downtrend, explains outstanding crypto analyst Worlds Of Charts.
$Avax
Consolidating In Falling Wedge Chart Pattern Seems Like Healthy Correction Has Almost Accomplished Now Getting Ready For Breakout & Preparing For Bullish Continuation Expecting Move Towards 60-65$ In Case Of Successful Breakout #Crypto #Avax pic.twitter.com/XafWguyk8w
— World Of Charts (@WorldOfCharts1) July 1, 2024
The falling wedge is a key signal that AVAX could be coiling up for a major upward surge, the analyst said. Worlds Of Charts predicts a price surge towards the $60-$65 range if the breakout materializes.
Backing this sentiment, CoinCodex, a well-liked crypto prediction platform, offers a more aggressive forecast. Their data suggests a staggering 227% increase for AVAX, propelling the value to a lofty $91.46 by August 2nd, 2024.
Source: CoinCodex
On-Chain Metrics Reveal Investor Confidence
Meanwhile, on-chain data from IntoTheBlock paints an image of investor confidence. Over half (51%) of AVAX holders are currently in profit, showcasing a positive long-term outlook.
Source: IntoTheBlock
Further bolstering this confidence, a whopping 45% of investors have held onto their AVAX for over a yr, indicating a commitment to the project’s long-term vision.
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The dominance of huge investors, sometimes called whales, within the AVAX ecosystem is one other noteworthy point. These whales hold a major 72% of the circulating supply, contributing to a way of stability. Whale activity can significantly impact price movements, and their continued investment in AVAX suggests they see value within the platform’s potential.
Avalanche is now trading at $27.20. Chart: TradingView
A Call For Measured Optimism
The recent price dip also serves as a reminder of the inherent volatility within the crypto market. While the falling wedge pattern suggests a possible reversal, a confirmed breakout stays to be seen. With careful evaluation and a well-defined investment strategy,
Avalanche may very well be poised for a major climb. Nevertheless, for now, investors are smart to exercise caution and avoid being swept away by the present of bullish enthusiasm.
Featured image from Pexels, chart from TradingView