Avalanche (AVAX), the smart contract platform known for its fast transaction speeds, is sparking excitement in the crypto world. With the recent price slump seemingly coming to an end, analysts are eyeing a potential breakout that could boost AVAX tnew highs. However, amid the bullish rumors, experts advise a dose of cautious optimism before investors jump on the bandwagon.
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A consolidation phase suggests potential for a breakout
AVAX’s current price action has analysts glued to their charts. The coin is consolidating within a falling wedge pattern, a technical indicator that often precedes an upside breakout. This consolidation suggests a healthy correction following a previous downtrend, explains prominent crypto analyst Worlds Of Charts.
Consolidation in falling wedge chart pattern looks like healthy correction is almost complete now Preparing for breakout and preparing for bullish continuation, expecting move towards $60-65 in case of successful breakout #Crypto #Avax pic.twitter.com/XafWguyk8w
– World of Charts (@WorldOfCharts1) July 1, 2024
The drop is a key sign that AVAX could be gearing up for a significant upside, the analyst said. Worlds Of Charts predicts a price increase in the $60 to $65 range if the breakout materializes.
Supporting this sentiment, CoinCodex, a popular crypto prediction platform, offers a more aggressive forecast. Their data suggests an astonishing 227% surge for AVAX, taking the price to a lofty $91.46 on August 2, 2024.
![Avalanche on the Brink: Will AVAX Breakout and Reach $65? 2 A 9a10a7](https://thegurumedia.com/wp-content/uploads/2024/07/A_9a10a7.png)
On-Chain Metrics Reveal Investor Confidence
Meanwhile, on-chain data from IntoTheBlock paints a picture of investor confidence. More than half (51%) of AVAX holders are currently in profit, demonstrating a positive long-term outlook.
![Avalanche on the Brink: Will AVAX Breakout and Reach $65? 3 A d96def](https://thegurumedia.com/wp-content/uploads/2024/07/A_d96def.png)
Further reinforcing this confidence, 45% of investors have held their AVAX for more than a year, indicating a commitment to the project’s long-term vision.
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The dominance of large investors, often referred to as whales, in the AVAX ecosystem is another noteworthy point. These whales hold 72% of the circulating supply, contributing to a sense of stability. Whale activity can significantly impact price movements, and their continued investment in AVAX suggests that they see value in the platform’s potential.
A call for measured optimism
The recent price drop also serves as a reminder of the inherent volatility of the crypto market. While the falling wedge pattern suggests a potential reversal, a confirmed breakout has yet to be seen. With careful analysis and a well-defined investment strategy,
Avalanche may be poised for a significant rally. However, for now, investors should exercise caution and avoid getting swept up in the current of bullish enthusiasm.
Featured image from Pexels, chart from TradingView