Three days ago, BeInCrypto reported that the downtrend was planning to push the price of Avalanche (AVAX) up to $25. The token price has declined in that direction, but recent data suggests it will bounce back soon.
The value of the cryptocurrency has fallen 12.31% over the past seven days and is trading at $27.72. Potential future targets include:
Avalanche Owner's HODL Plan
First, we analyzed addresses by retention time provided by IntoTheBlock.
- Address by holding time: This indicator is divided into holders, cruisers and traders. Holders are people who have held tokens for at least one year. Cruisers are people who have held tokens for between 1 and 12 months. Lastly, traders are those who have made purchases within the last 30 days.
As of this writing, the number of cruisers, also called swing traders, has decreased over the past 30 days. Short-term speculators followed a similar path.
However, addresses holding AVAX for more than a year increased by 16.12% over the same period. Historically speaking, a decline in the number of holders means a bull market is reaching its final stages.
Read more: How to add Avalanche (AVAX) to MetaMask : Step-by-step guide
We can see evidence of this by looking at past cycles, including 2013, 2017 and 2021. However, when the price of a cryptocurrency goes through a correction, the number of Avalanche holders increases is a bullish sign.
Additionally, if this trend continues, Avalanche may take steps to recover some of its losses. The addresses of each holding are also evidence of the potential for price increases.
- Addresses by Holdings: Groups addresses by the number of tokens they hold and tells you whether more market participants are buying more or existing addresses are selling.
At press time, the number of addresses holding between 100,000 and 10 million AVAX has increased. An increase in the number of holders holding large amounts of tokens is a positive sign of rising prices. Therefore, AVAX may resist further decline and begin to rise.
AVAX Price Prediction: Challenges Emerge Despite Bullish Potential
As you can see below, the price of Avalanche has bounced back after previously falling to $26.47. Although still hovering below $30, the bulls appear ready to curb the persistent decline . The Relative Strength Index (RSI) shows evidence of this attempt.
- Relative Strength Index (RSI): This technical metric shows whether a cryptocurrency’s momentum is bullish or bearish. You can also identify overbought (above 70) and oversold (below 30) points.
On June 18, AVAX fell into oversold territory. However, the RSI is 32.07, showing that a buying trend is starting to appear little by little. If bulls maintain this momentum, the price of AVAX could rise to $30.95. In a very bullish scenario, the token could be worth as much as $33.20.
However, Ichimoku Cloud metrics show that AVAX may be a stumbling block to these efforts. When this happens, bullish price predictions become invalid.
Ichimoku Cloud : Consists of five moving averages that help determine trend direction. As a result, we discover areas of resistance and support.
If the price indicated by the candle moves around the cloud, it is in an upward trend. However, if a cloud is above the price, it is in a downtrend. If you look at the AVAX/USD daily chart above, you can see that a cloud has formed below the price in March.
Read more: How to Buy Avalanche (AVAX) and Everything You Need to Know
As a result, AVAX fell to $60.66 at the time. But as of this writing, the opposite is true. On the face of it, the price of AVAX could rise. However, if the buying trend is not strong, it may not exceed $31.98. This could lead to a decline to $26.60.
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