Avalanche (AVAX) price has moved lower this month after testing the lower trendline of the rising channel for several weeks.
However, investors appear to be focused on turning resistance back into support as they target profits rather than losses.
green flag for avalanche
Avalanche’s price points to growth potential due to the rise in conviction observed among AVAX holders. This is evident in the shift in supply from small and mid-cap holders to long-term holders who are known to maintain supply for at least a year.
Over the past three weeks, AVAX holders have accumulated more than 4% of the circulating supply in over a year, adding 4.2 million AVAX worth $161 million to their wallets, for a total of 20.72 million AVAX.
This shows that despite the price drop, AVAX holders have not succumbed to weakness and are still hoping for a recovery.
Read more: What is Avalanche (AVAX)?
The market is also in sync with investor sentiment as bullish signals flash across price indicators such as Moving Average Convergence Divergence (MACD). This is a technical indicator used to identify changes in momentum and potential trend reversals in a security or asset.
When graphed, MACD records the formation of a bullish crossover with a green bar on the histogram. This marks the start of a potential rally, the first in over a month.
AVAX Price Prediction: Bullish Recovery?
Trading at $38, Avalanche’s price is close to exceeding $40 and could rise further based on observed strength. AVAX faces a barrier of $44, a breach of which could lead to a rise to $48-$50, which represents the lower trend line of the upward channel the altcoin belongs to.
If AVAX continues to receive investor support, this rise would mean a 20.31% increase in Avalanche’s price.
Read More: Avalanche (AVAX) Price Prediction 2024/2025/2030
However, if the $44 resistance fails, the altcoin could fall back to $33. Losing this support could invalidate the bullish results and potentially lead to a decline to $29 or $27.
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