Avalanche (AVAX) price points to $30 as the next target, data suggests

Three days ago, BeInCrypto reported that the bears plan to push the price of Avalanche (AVAX) to $25. While the price of the token has dropped in that direction, recent data suggests that it may rise again soon.

Trading at $27.72, the cryptocurrency's price has fallen by 12.31% over the past seven days. Here are the possible targets for the coming days.

Avalanche holders plan to HODL

First, we analyzed addresses by Time Held as provided by IntoTheBlock.

Addresses Timed: This parameter is divided into Holders, Cruisers and Traders. Holders hold tokens for at least one year. Cruisers hold the token for one to 12 months. Finally, merchants are those who have made a purchase in the last 30 days.

As of this writing, cruisers, so-called swing traders, have declined over the past 30 days. Short-term estimates have followed a similar path.

However, addresses holding AVAX for at least one year increased by 16.12 percent over the same period. Historically, when the number of holders declines, it means that the bull market has reached its end.

Read more: How to add Avalanche (AVAX) to MetaMask: Step-by-step guide

Past cycles including 2013, 2017 and 2021 show evidence of this. However, the increase in the number of Avalanche owners when the price of cryptocurrency is adjusted is a sign of brutality.

Additionally, if it continues, AVAX may begin taking steps to eliminate some of its losses. Addresses in properties also show evidence of possible price increases.

Addresses by Holdings: Classifies addresses based on the number of tokens owned and tells whether more market participants are buying more or existing addresses are being sold.

At the time of publication, the number of addresses holding AVAX has increased from 100,000 to 10 million. An increasing number of those with large amounts of tokens is a positive sign for the price. As such, AVAX may experience further downside and start to climb.

AVAX Price Forecast: Challenges are likely, but looming

As shown below, Avalanche's price rose after earlier falling to $26.47. Despite staying sandwiched below $30, bulls look poised to fend off a sharp decline. The Relative Strength Index (RSI) shows confirmation of this test.

Relative Strength Index (RSI): This technical oscillator shows whether the cryptocurrency's momentum is bullish or weak. It can also identify overbought (readings above 70) and oversold (readings below 30) points.

On June 18, AVAX dropped into oversold territory. But at 32.07, RSI shows that small drops of buying pressure are starting to appear. If bulls support this momentum, AVAX price could jump to $30.95. In the most prominent scenario, the price of the token can reach $33.20.

However, the Ichimoku Cloud indicator shows that AVAX may face a setback in its testing. If this happens, the bullish price forecast will be invalidated.

Ichimoku Cloud: consists of five moving averages, which help to identify the direction of the trend. As a result, it supports protests and regions.

If the value indicated by the candles moves about the cloud, it is higher. But if the cloud is above the price, it is a downward trend. Looking at the daily chart of AVAX/USD above, we notice that the cloud was below the price in March.

Read more: How to buy Avalanche (AVAX) and everything you need to know

Consequently, this boosted AVAX to $60.66 at the time. However, in this article, it is the other way around. From the looks of things, the price of AVAX could rise. However, if buying pressure is not strong, it cannot go above $31.98. This could force a rejection towards $26.60.