Key Takeaways: Avalanche (AVAX) Price Analysis and Predictions
As of the end of July, Avalanche (AVAX) was valued at over $33, but it has since dropped by $13. The on-chain data is flashing warning signs, indicating a potential further decline in price. Here is an in-depth analysis of the current situation and predictions for AVAX:
Data on the Chain: Warning Signs
One key metric, the Price to Finance Ratio (IOMAP), reveals that a significant number of addresses holding AVAX are currently facing losses. With 82,670 addresses purchasing AVAX at an average price of $21.12 and now experiencing unrealized losses, selling pressure could increase. On the other hand, 70,930 addresses bought AVAX at a lower price, suggesting potential resistance due to profit-taking.
Possible Price Predictions: $19 or $17?
Recent price trends indicate AVAX’s underperformance compared to other altcoins, with a 40% retracement observed between July 22 and August 6. Furthermore, AVAX is trading below the 20-day Exponential Moving Average (EMA), signaling a bearish trend. If buyers fail to step in, the price could drop to $19.56 and possibly even $17.03.
Potential Upside: $23.07 to $26.64
If buying pressure strengthens, AVAX could see a rally towards $23.07 and potentially surpass the $24.25 EMA level to reach $26.64. However, this upside scenario would require a significant increase in buying activity to counteract the current selling pressure.
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