[Avalanche (AVAX) stays above $50: If it fails, the impact on $1 billion position]
Avalanche (AVAX) prices have been sideways for the past two weeks and are expected to continue to do so until they find the strength to drive the bull market. However, AVAX appears to be facing bearish pressure from its investors.
AVAX is currently trading around $53 and is at risk of further declines. If the price falls below $51, approximately 22 million AVAX purchased between $51 and $56 will be at risk of loss.
While market conditions have an impact on cryptocurrency prices, AVAX is suffering more from its short-term trader investors. This group of short-term traders, who typically hold the asset for no more than a month and account for 34.15% of the total circulating supply, could see the price of AVAX drop sharply once they choose to sell to avoid losses.
If AVAX price loses the $53 support, it could test the $50 price level. If selling pressure increases or bear momentum intensifies, AVAX could drop further to $47, a price in line with the 100-day exponential moving average.
On the other hand, if market winds change, AVAX could shift the 50-day EMA from resistance to support, which could trigger a rebound and continue consolidating in this range. In this case, there is even a chance that AVAX could break above the $58 resistance, thereby invalidating the bear market forecast.
