Avalanche (AVAX) Price Rises as Whales Accumulate
07/02/2024 00:00
Avalanche's price is on the verge of recovery, driven upwards by significant whale accumulation and market's bullishness.
Avalanche’s (AVAX) price hit a multi-month low following bearish market conditions, but this did not last long.
Increased bullish whale activity and improved market conditions substantiate the potential for recovery.
Avalanche Whales Attempt to Influence the Price
Avalanche’s price could be benefitting largely from the bullishness exhibited by the whales. These large wallet holders have been on an accumulation spree over the last two weeks.
Since whale addresses are some of the most important cohorts of investors, their move also influences the price action. Accumulation leads to a rise in price, whereas selling results in a drawdown.
During this time, the whale addresses acquired $139 million worth of AVAX in just one day. This buying spree indicates strong interest and confidence among large investors in the altcoin’s potential.
In addition to this substantial whale activity, AVAX’s correlation to Bitcoin remains strong, currently standing at 0.88. A high correlation often suggests that AVAX’s price movements will closely follow those of BTC.
Given Bitcoin’s recent recovery, AVAX’s strong correlation to BTC bodes well for its own recovery prospects. As Bitcoin continues to rise, it is likely that the altcoin will experience similar upward momentum.
Read More: How To Buy Avalanche (AVAX) and Everything You Need To Know
AVAX Price Prediction: Rise in Sights
Avalanche’s price trading at $29.61 is closing in on the critical resistance level at $31.15. This price has tested as a crucial support level multiple times in the past and flipping it into support again is the target.
Given that AVAX has already bounced back from a seven-month low of $24.40, there is a good chance it could breach $31 as well.
Read More: Avalanche (AVAX) Price Prediction 2024/2025/2030
However, the market’s volatility cannot be ruled which keeps this recovery vulnerable. If the support at $24.40 is lost, the bullish thesis could be invalidated completely, leading to Avalanche’s price dropping to $20.
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Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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