Avalanche (AVAX) price is expected to remain consolidated due to the lack of substantial growth expected from the altcoin.
AVAX holders also show selling sentiment as short-term investors control the supply.
Avalanche Investors Expect Selling
Avalanche’s price will soon be able to observe the impact of investor actions. Supply is dominated by short-term holders who are known to hold supply for a month or less.
This makes it easy for your holdings to be sold off. As for AVAX, almost 28% of all AVAX in circulation is in their hands. 40% of AVAX is still held by medium-term investors who hold their assets for more than a month but less than a year.
However, 28% still accounts for over 107 million AVAX, making these investors a significant threat to the Avalanche price.
Second, the Avalanche’s price will face significant resistance due to massive demand barriers. According to the Global In/Out of the Money Indicator (GIOM), approximately 12.47 million AVAX are awaiting returns. These supplies were purchased for an average price of $38, making them worth more than $473 million.
A strong bullish signal is needed as AVAX will need to push towards $42 to confirm absolute and complete profits. However, considering market conditions, this may not be the case.
Learn More: How to Buy Avalanche (AVAX) and Everything You Need to Know
As a result, the price of the Avalanche will fall again.
AVAX Price Prediction: Future Consolidation
The Avalanche’s price of $36 is up 15% over the past three days, up from $31. The latter marked the lower end of the consolidation range that AVAX has been stuck in for a month. The upper limit is $39.
The altcoin has attempted to break out of this consolidation nearly three times in the past month, but has failed each time. Even during this week’s rally, AVAX is only halfway there. Moreover, the cryptocurrency failed to neutralize the dead cross that occurred six weeks ago.
The bearish impact will continue until the 50-day exponential moving average (EMA) crosses the 200-day EMA. As a result, the Avalanche’s price will likely remain consolidated until the end of the month.
Read More: Avalanche (AVAX) Price Prediction 2024/2025/2030
However, if the winds change and AVAX investors decide not to sell and instead press on, the bullish argument could be invalidated. AVAX needs to move out of consolidation and move $39 into support.
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