Avalanche (AVAX), a smart contract platform known for its fast transaction speeds, is stirring up excitement in the cryptocurrency world. As the recent price drop comes to an end, analysts are looking forward to a potential rally that could push Afax TNew highs. However, amid the bullish whispers, experts advise a dose of cautious optimism before investors join the wave.
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The consolidation phase indicates the possibility of penetration.
The current price action of AVAX has analysts glued to their charts. The coin is consolidating itself within a falling wedge pattern, a technical indicator that often precedes an upside breakout. Prominent crypto analyst Worlds Of Charts explains that this consolidation signals a healthy correction after a previous downtrend.
The consolidation in the falling wedge chart pattern looks like a healthy correction that is almost completed now, we are preparing for the breakout and preparing for the continuation of the rise and expect a move towards $60-65 in case of a successful breakout. #cryptocurrencies #Avax pic.twitter.com/XafWguyk8w
— World of Charts (@WorldOfCharts1) July 1, 2024
The analyst said the sharp decline is a key signal that AVAX stock could be poised for a major rally. Worlds Of Charts expects prices to surge towards the $60-$65 range if the breakout occurs.
In support of this sentiment, CoinCodex, a popular cryptocurrency prediction platform, offers more aggressive expectationsTheir data indicates a staggering 227% increase in the price of AVAX, which will push the price to a high of $91.46 by 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 holders are currently in profit, showing a positive long-term outlook.
This confidence was further reinforced by 45% of investors holding their funds in AVAX for more than a year, indicating their commitment to the project’s long-term vision.
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Another point worth noting is the dominance of large investors, often referred to as whales, in the AVAX ecosystem. These whales hold a whopping 72% of the circulating supply, which contributes to a sense of stability. Whale activity can have a significant impact on price movements, and their continued investment in AVAX suggests that they see value in the platform’s potential.
A call for thoughtful optimism
The recent price drop also serves as a reminder of the inherent volatility of the cryptocurrency market. While the falling wedge pattern suggests a potential reversal, a confirmed breakout is still not possible. With careful analysis and a well-defined investment strategy,
Avalanche stock may be about to skyrocket. But for now, investors should be cautious and avoid getting carried away by the bullish momentum.
Featured image by Pexels, chart by TradingView
