The price of Avalanche (AVAX) has seen a notable decline on the daily chart recently, dropping below $50.
Despite this downturn, there is a wave of optimism from a significant group of investors that could catalyze a recovery.
Avalanche Attracts Crypto Whales
The outlook for Avalanche is becoming increasingly positive, thanks to substantial interest from crypto whales — investors with holdings ranging from $1 million to $10 million worth of AVAX. These whales have collectively added nearly 52 million AVAX, valued at over $2.1 billion, in just three days since the start of April.
Their substantial investment strongly indicates their confidence in the asset’s potential for price appreciation.
AVAX Whales Holdings. Source: IntoTheBlock
Moreover, Avalanche is distinguishing itself from the broader crypto market. Its correlation with Bitcoin stands at a low 0.17, suggesting that while it may still follow the broader market trends, its price movements won’t be as closely tied to Bitcoin’s fluctuations.
This independence could set the stage for significant gains. Indeed, a high correlation suggests that an altcoin will mirror Bitcoin’s price movements, while a low or negative correlation indicates a more independent price movement.
AVAX Correlation with BTC. Source: IntoTheBlock
AVAX Price Prediction: Another Rally
Given these factors, Avalanche’s price could see a 23.5% rise from its current trading price of $47.32, potentially reaching $60. This level is just above the year-to-date high of $65.
However, reaching this target depends on AVAX’s ability to overcome several resistance levels at $50, $53, and $58. The $53 mark, in particular, is a critical barrier that has been tested multiple times.
AVAX Price Chart. Source: TradingView
Should Avalanche struggle to surpass these resistance levels, particularly the $53 mark, it could lose its bullish momentum and see a reversal in its upward trend. This scenario would negate the optimistic forecast and could result in the price falling back below $50.
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