The high transaction speeds of Avalanche (AVAX), the smart contracts platform, are causing buzz in the cryptocurrency space. Analysts are looking for a possible breakout that can drive AVAX to fresh highs as a recent price drop seems almost to be over. Experts warn a dose of cautious optimism before investors go on the bandwagon among the optimistic whispers, though.
A Consolidation Phase Hints At Breakout Potential
Analyses of AVAX’s present price movement have them riveted on their charts. Often preceding a bullish breakout, the coin is consolidating inside a declining wedge formation technically. Prominent crypto expert Worlds Of Charts notes that this consolidation points to a good comeback following a past downturn.
Consolidating In Falling Wedge Chart Pattern Seems Like Healthy Correction Has Almost Completed Now Getting Ready For Breakout & Preparing For Bullish Continuation Expecting Move Towards 60-65$ In Case Of Successful Breakout — World Of Charts (@WorldOfCharts1)
The expert said that one important clue AVAX may be coiling up for a strong upward surge is the declining wedge. Should the breakout materialise, Worlds of Charts projects a price explosion towards the $60-$65 level.
Supporting this view, well-known crypto prediction tool CoinCodex presents a more forceful projection. Their figures show an astonishing 227% rise for AVAX, which drives the price to a high $91.46 by August 2, 2024.
On-Chain Metrics Reveal Investor Confidence
On-chain data from IntoTheBlock, meantime, shows investor confidence. With over half (51%) of AVAX holders in profit right now, AVAX has a good long-term prognosis.
Some 45% of investors have kept onto their AVAX for more than a year, showing a dedication to the long-term goal of the project. This helps to boost confidence even further.
Another interesting observation is the surge of big investors, also known as whales, in the AVAX ecosystem. With a major 72% of the circulating supply, these whales help to create stability. Whale activity may have a big influence on price swings; their ongoing AVAX investment shows they recognise the platform’s possibilities.
A Call For Measured Optimism
The recent price decline also reminds us of the natural volatility in the crypto industry. A definite breakthrough is still to be observed even if the declining wedge pattern points to a possible reversal. Under rigors examination and with a properly defined investment plan,
Featured image from Pexels, chart from TradingView
