Avalanche (AVAX) price is showing signs of a potential breakout as long-term investors increase and short-term traders decrease. With the price currently hovering around $29.26, AVAX is approaching two major resistance areas that could determine its next move.
A successful break above $34.12 could lead to a massive 79% rally. However, failure to break these resistances could lead to significant downside risks, with potential for future declines.
Long-Term Investors Increase in Avalanche: A Bullish Sign?
In the past month, the number of long-term investors in Avalanche (AVAX) has grown by 4.26%, which may not seem like a lot at first glance, but that translates to about 200,000 additional addresses.
These long-term investors, defined as having owned Avalanche for more than a year, indicate a growing commitment to the asset, which can have a significant impact on its price stability and potential future growth.
Overall, the chart suggests that Avalanche is likely to continue its positive movement.
AVAX Price Prediction: 79% Upside?
When looking at the global entry/exit chart of Avalanche, we can notice two major resistance areas located in front of its price.
Global In/Out is a metric that measures the profitability of addresses holding Avalanche Coin. Essentially, it shows the percentage of addresses that are either âin profit,â âbreakeven,â or âout of profitâ based on the current AVAX price of $29.26.
The first major resistance is around the $34.12 level, where a large number of addresses are holding AVAX, waiting to break even or sell in this price range.
If AVAX can successfully break through this resistance, the next area to watch is between $39.76 and $54.30. This could represent a potential increase of up to 79%, indicating a great opportunity for an upward price movement.
On the other hand, if the current trend fails to break through the resistances, Avalanche could face significant downside risks. A price reversal could take it down to the $25 range, where the next bear rally is concentrated.
In a more bearish scenario, the price could drop to $18, which would be a potential 38% decline from current levels. This shows the importance of keeping a close eye on key levels, as breaking them or not will determine AVAXâs short-term direction.
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