Avalanche (AVAX) price is showing signs of a potential rally as long-term holders increase and short-term traders decrease. With the price currently hovering around $29.26, AVAX is approaching two key resistance zones that could determine its next move.

A successful break above the $34.12 level could trigger a massive 79% rally. However, failure to break above these resistances could result in significant downside risk, with possible drawdowns ahead.

Is the increase in long-term holders a positive sign?

Over the past month, the number of long-term holders of Avalanche (AVAX) has grown by 4.26%, which may not seem like much at first glance, but this translates to around 200,000 additional addresses.

These long-term holders, defined as those who have held AVAX for more than a year, indicate a growing commitment to the asset, which could have a significant impact on its price stability and future growth potential.

Read more: How to Buy Avalanche (AVAX) and Everything You Need to Know

At the same time, the number of traders — those holding AVAX for less than a month — dropped by 6.86%, or about 13,000 addresses. This shift suggests a strengthening belief in the coin’s value and its long-term potential. As more people hold their AVAX for extended periods, selling pressure will decrease, which could create a more favorable environment for price appreciation.

Fewer traders means less volatility, and with more long-term holders showing confidence in the project, this could be a strong positive sign for AVAX in the coming months.

AVAX Addresses by Tenure. Source: IntoTheBlock.

Ichimoku Cloud Indicates Positive Outlook

The Ichimoku Cloud chart for AVAX/USD shows several indications that point to a positive outlook for Avalanche. One of the main positive signs in Ichimoku analysis is when the price is above the cloud, and this is clearly seen on the chart.

When price breaks above the cloud, it often suggests a shift to upward momentum, which can indicate further price appreciation. Additionally, the cloud itself is currently green, reinforcing the positive trend.

AVAX Ichimoku Cloud. Source: TradingView.

Although the cloud is relatively thick, suggesting there may be some resistance ahead, the overall outlook remains favorable.

Another important aspect is the position of the lagging span (Chikou Span), which is currently above the price, confirming that the current momentum is supporting the uptrend. Furthermore, the conversion line (Tenkan-sen) is above the base line (Kijun-sen), indicating stronger short-term momentum compared to the long-term trends, which adds to the positive case.

Overall, the chart suggests that AVAX is likely to continue its positive movement.

AVAX Price Prediction

Looking at the Global In/Out of the Money chart for AVAX, we can see two key resistance zones that lie ahead for its price.

“Global In/Out of the Money” is a metric that measures the profitability of addresses holding AVAX. Essentially, it shows the percentage of addresses that are “In the Money,” “At the Money,” or “Out of the Money” based on the current AVAX price of $29.26.

Read more: How to Add Avalanche to MetaMask: A Step-by-Step Guide

The first significant resistance is around the $34.12 level. At this level, therefore, a considerable number of addresses are holding AVAX, waiting to break even or sell at this price range.

If AVAX can successfully break above this resistance, the next zone to watch is between $39.76 and $54.30. This would represent a potential rally of up to 79%, signaling a great opportunity for upward price movement.

AVAX Global In/Out of the Money. Fonte: IntoTheBlock.

On the other hand, if the current trend fails to break through the resistances, AVAX could face significant downside risk. A price reversal could see it fall towards the $25 range, where the next group of holders are concentrated.

In a more bearish scenario, the price could even drop to $18, resulting in a potential 38% drop from current levels. This highlights the importance of closely monitoring key levels, as whether or not they are broken will determine AVAX’s short-term direction.

The post Could Avalanche (AVAX) Jump 79% If It Breaks Resistance? – Analysis Responds appeared first on BeInCrypto.