Key Insights:
- Whales buy $18M AVAX, hinting at bullish momentum for Avalanche price.
- AVAX price at key level faces tough resistance at $22.55, and failure could mean a 27% drop.
- $145 AVAX price target possible as analyst sees Bitcoin dominance dip is coming.
Avalanche price gained with the entire crypto market this week, registering modest gains of 18.5%. This includes the 2.5% added in the last 24 hours to bring it to $22.55 per coin. Despite the rise in price, volume is down 8.5% to $354 million per Coingecko. Technical analysis shows AVAX price needs some extra juice to push over a key resistance level. Will Avalanche clinch 26% gains, or will it tumble back down to $15?
Whales Scoop Up $18M AVAX as Avalanche Price Gains 19%
First off, whale activity has been bubbling over at the Avax network. According to data from IntoTheBlock, AVAX whales—those big players holding over 1% of the circulating supply—have been stacking up like it’s Black Friday.
Large holder netflow increased from -71.85k AVAX to 775.02k AVAX in the last 24 hours. That’s an addition of over 845,000 AVAX (~$18.7 million at current prices). This signals some serious confidence in Avalanche’s future, and it often hints at a potential pump.
The broader crypto market has been a bit of a mess. Bitcoin (BTC) hit a snag at $94,000, where a support-turned-resistance-turned-support has formed. This hitch in upward price momentum was partially caused by a return of hype to the Official Trump Coin (TRUMP), which gained 72% in the last 7 days. This hitch put a pause in a lot of altcoin rallies, including AVAX.
Analyst Calls for $145 AVAX Price If This Happens
Crypto analyst CryptoBullet has predicted that the Avalanche price will hit $105-$145 price zone. However, he said “BTC.D has to start going down” if this prediction is to come to pass. According to CryptoBullet, in the fourth quarter of 2023, going into the first quarter of 2024, the price of AVAX skyrocketed 7X (600%) on a rising Bitcoin dominance (BTC.D).
Historically, when BTC.D starts dropping, altcoins start popping off. Currently, Bitcoin dominance is cooling off after hitting a 4-year high.
Is Avalanche Price About to Break Out or Get Rekt?
The below chart is a 1-Day candlestick chart of AVAX/USDT, showing a falling channel that AVAX broke out of on April 21.
Avalanche is currently testing a resistance level around its current price. If it faces rejection at this level, it could see a nasty 27% crash to $15.77, as highlighted on the chart.
The moving averages aren’t looking too hot either. The 200-day simple moving average (SMA) is starting to slope down, which can mean bears currently have power even if the price is rising in the short term.
This indicator acts as a dynamic resistance, suppressing the price of Avalanche below $30.13.The 50-day SMA is trending lower, supporting the price action from below around $19.36. If AVAX can’t break above the current $22.50 resistance, it’s gonna have a tough time avoiding that 27% crash.
On the momentum side, the relative strength index (RSI) is at 63.61, which is pretty bullish but nearing the overbought territory. This could mean the Avalanche price is due for a pullback if bears step in, but there’s no strong bearish signal just yet.
The moving average convergence/divergence (MACD) indicator is also bullish, with the MACD line above the signal line and facing upward.
AVAX is at a crossroads. If the layer 1 blockchain can hold this zone and whales keep stacking, it might see a break above the resistance and a subsequent rally toward $30.13. Otherwise, AVAX might crash by 27% to $15.77. Either way, Avalanche is a solid project with big potential.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
