Investors Concerned as Avalanche (AVAX) Price Faces Impending Consolidation

Friday, 17 May 2024, 20:35

Avalanche's (AVAX) price is expected to consolidate in the near future due to a selling sentiment among short-term investors. With a significant portion of circulating AVAX held by these investors, and a substantial demand barrier preventing price growth, the altcoin is likely to face challenges in breaking out of its consolidation range. Despite a recent 15% rally, bearish signals and the looming death cross could keep AVAX price restricted in the coming days.
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Investors Concerned as Avalanche (AVAX) Price Faces Impending Consolidation

Avalanche AVAX Price Prediction: Bearish Signals Suggest Upcoming Consolidation

Avalanche's price is likely going to remain consolidated over the coming days owing to potential selling from investors.

Avalanche Investors Look to Sell

Avalanche's price could soon observe the impact of investors' behavior; the supply is dominated by short-term holders known to hold their supply for one month or less.

  • Short-term holders account for 28% of circulating AVAX

Avalanche Supply Distribution

Secondly, Avalanche's price will face significant resistance owing to a massive demand barrier. According to the Global In/Out of the Money Indicator (GIOM), about 12.47 million AVAX await profits.

  1. This would require strong bullish cues as AVAX would have to push to $42 to ascertain profits

As a result, Avalanche's price will fall back down.

AVAX Price Prediction: Consolidation Ahead

Avalanche's price has rallied 15% in the past three days, but bearish influences and the impending death cross suggest that price consolidation or decline is likely until the end of the month.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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