Is Avalanche (AVAX) Set To Merge?
The price of Avalanche (AVAX) is expected to strengthen due to the lack of significant growth expected from the altcoin.
As short-term investors dominate supply, AVAX holders show a sell sentiment.
Avalanche investors are looking to sell
Avalanche prices may soon see the impact of investor behavior; The supply is held by short-term holders who are known to hold their supply for a month or less.
This exposes their holdings to sale. In the case of AVAX, they hold nearly 28% of total AVAX. Forty percent of AVAX is still held by medium-term investors who have held their assets for more than a month and less than a year.
However, 28% still holds more than 107 million AVAX, making investors very concerned about Avalanche's value.
Secondly, the price of Avalanche faces significant resistance due to the high demand barrier. According to the Global In/Out Money Indicator (GOM), it expects a profit of 12.47 million AVAX. This offering was purchased at an average price of $38 and is valued at over $473 million.
This requires strong bullish signals, as AVAX needs to push to $42 for a full and complete profit. However, considering the market conditions, this may not be the case.
Read more: How to buy Avalanche (AVAX) and everything you need to know
As a result, the value of Avalanche will be reversed.
AVAX Price Forecast: Future Consolidation
Avalanche's share price of $36 has risen 15 percent in the past three days from $31. The lower bound of the latter consolidation range is the AVAX stuck for a month. The maximum limit is 39 dollars.
The altcoin has tried to break out of this merger three times in the past month, but failed each time. Even with this week's rally, AVAX only made it halfway. In addition, the cryptocurrency has not lost its price after the death cross that occurred six weeks ago.
The bearish influence continues until the 50-day exponential moving average (EMA) crosses over the 200-day EMA. As a result, Avalanche prices are likely to remain firm until the end of the month.
Read More: Avalanche (AVAX) Price Prediction 2024/2025/2030
However, if the winds change and AVAX investors don't choose to sell but instead push forward, the bullishness thesis may be invalidated. AVAX needs to withdraw from the compiler and transfer $39 to support.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
