Avalanche (AVAX) price hit a multi-month low amid bearish market conditions, but that didn't last long.
Increased activity by bull whales and improving market conditions demonstrate the potential for recovery.
Avalanche Whales Attempt to Influence Prices
Avalanche's price may be greatly influenced by the strength shown by the whales. These large wallet holders have continued to accumulate assets over the past two weeks.
Whale addresses are one of the most important groups of investors, so their movements also influence price movements. Buying leads to a rise in price and selling leads to a fall in price.
During this period, Whale Address purchased $139 million worth of AVAX in just one day. This buying spree indicates strong interest and confidence among large investors in the potential of altcoins.
In addition to this significant whale activity, the correlation between AVAX and Bitcoin remains strong, currently at 0.88. The high correlation often suggests that AVAX's price movements are closely related to Bitcoin price movements .
Considering Bitcoin's recent recovery, AVAX's strong correlation with BTC bodes well for its own recovery prospects. As Bitcoin continues to rise, altcoins are likely to experience similar upward momentum.
Read more: How to Buy Avalanche (AVAX) and Everything You Need to Know
AVAX Price Prediction: Bullish
Avalanche, trading at $29.61, is approaching the important resistance level of $31.15. This price has been tested as an important support level several times in the past and the goal is to move back there.
Considering that AVAX has already rebounded from a seven-month low of $24.40, it is highly likely that it will break through $31.
Read More: Avalanche (AVAX) Price Prediction 2024/2025/2030
However, this recovery may be fragile as market volatility cannot be ruled out. A breakdown of the $24.40 support line could completely invalidate the bullish logic and push the Avalanche price down to $20.
