Key Insights
- AVAX price consolidates around $20-$25 and is poised for a breakout rally.
- The number of AVAX HODLers is now higher than at the start of February.
Avalanche (AVAX) price has managed to sustain gains near the demand zone of $20. Moving ahead, the token was on the verge of a notable price surge.
Despite the shift in market sentiment, the last few weeks have not favored the bulls. The altcoin witnessed a price decline of over 40% from $40 to $25.
At press time, Avalanche price was trading at $25.14, noting a decline of over 0.35% in the past 24 hours. Its market cap stood at $10.4 Billion and ranked 13th in the crypto market.
AVAX Price Set to Rise: Here’s the Analyst Insights
A recent post on X by AMCrypto highlighted that the AVAX price was on the brink of a trendline barrier of $26. In case of a successful cross above the hurdle, a significant rally could be seen.
If Avalanche crypto exceeds the $26 mark, it could surge as high as 17%. Moving ahead, the following targets would be $28 and $30. However, a failure to break the $26 mark would resume the sideways trend.
AVAX Bulls Eye a Rally: Is There Enough Demand to Sustain It?
Data from IntotheBlock indicated that the cryptocurrency faces modest demand. However, its level of adoption remained weak. The current market performance appears weak compared to the intense recovery seen in November 2021.
The single significant distinction rests in whale actions. According to data, whales sold much over the previous three days.
The total withdrawal from large AVAX holders exceeded 207,000 AVAX on February 20. Whale netflow showed positive flow patterns during the initial stages of the November price increase.
The significant difference between current and previous price insights may unveil valuable information about further price movement. AVAX price appears bullish, yet data suggests additional drops and weak demand remain possible.
The current price decline and low value of Avalanche crypto have started to attract investors. These investors have held their cryptocurrencies for extended periods (HODLers).
Data suggested accumulation among long-term investors because their AVAX holdings reached their highest point of 25.53 million recently.
When AVAX price experienced its bull run in November, its holders maintained a much lower number of coins. Their addresses held approximately 23 million AVAX tokens at the beginning of the bullish trend.
Trader balances markedly declined during the past three days, decreasing from 29.54 million coins to 26.98 million.
Investors choose longer-term trading strategies than short-term ones, as evidenced by the decline in trader balance statistics. This statistical pattern is consistent with the growing trend of HODLers increasing their balances. During this time, the cruiser class holders also demonstrated a high activity level.
Cruiser activity showed an increase in AVAX holdings from 52.8 million on November 1 to 58.3 million AVAX on February 20. Recent ownership data indicated numerous Avalanche coin holders anticipate upcoming price movements near current market value.
Despite the sluggish demand, Avalanche price could flip its trend and may recoup its recent losses ahead. In case of a break past the $26, a trend reversal may pave the way toward $30, followed by $40. However, a break below the $20 mark could trigger a further down move ahead.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
