Avalanche (AVAX) price, after weeks of testing the lower trend line of the rising channel, fell through it this month.
However, investors appear focused on flipping that resistance back into support as they aim for gains over losses.
Green Flag for Avalanche
Avalanche’s price notes the potential for growth owing to the rise in conviction observed among AVAX holders. This is evident in the supply shift from small and mid-term holders to long-term holders, known to sit on their supply for at least a year.
Over the past three weeks, AVAX holders have accumulated over 4% of the circulating supply for over a year, resulting in an increase of 4.2 million AVAX valued at $161 million in their wallets, raising the total to 20.72 million AVAX.
Avalanche Supply Distribution. Source: IntoTheBlock
This shows that despite the price decline, AVAX holders have not given in to the bearishness and are still hoping for recovery.
Read More: What Is Avalanche (AVAX)?
The market also aligns with the investors’ sentiment as bullish cues are being flashed across price indicators like the Moving Average Convergence Divergence (MACD). This is a technical indicator used to identify changes in momentum and potential trend reversals in a security or asset.
Avalanche MACD. Source: TradingView
When writing, MACD notes the formation of a bullish crossover with a green bar on the histogram. This is the first such instance in a month, marking the initiation of a potential rally.
AVAX Price Prediction: Rising Back up?
Avalanche’s price trading at $38 is close to crossing the $40 mark, and based on the observed bullishness, it could rise further. AVAX is facing a barrier at $44, and breaching it could enable a rise to $48 – $50, which marks the lower trend line of the rising channel the altcoin was in.
AVAX/USDT 1-day chart. Source: TradingView
This rise would mark a 20.31% increase in Avalanche’s price, provided AVAX continues to receive its investors’ support.
Read More: Avalanche (AVAX) Price Prediction 2024/2025/2030
However, if the breach of $44 resistance fails, the altcoin could fall back to $33. Losing this support would invalidate the bullish outcome, resulting in a potential dip to $29 or $27.
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