Averaging at $16, Avalanche maintains a stable level, yet faces hurdles for lasting bullish momentum.
Avalanche's Recent Dip and RecoveryTo the relief of many long-term investors, Avalanche (AVAX) has been making a comeback after a major dip, recovering around 9% on a recent Monday.
Despite this, it's been embattled since the 11th of June, shedding a whopping 26% in less than two weeks. However, smart money investors seem unfazed, holding onto their AVAX with profiteering grins.
Retail Investors' Mixed SignalsOn the other hand, retail investors have started cashing out their profits, while derivative traders are geared towards short positions.
Increasing On-Chain ActivityFear not, the on-chain activity is on the rise, although it hasn't reached the heights of April just yet. The 7-day active addresses change stood at a promising 204% at the time of writing. This surging activity could aid Avalanche's recovery and indicate a potential bullish reversal.
Is a Rally Imminent?As AVAX approaches the $19.5 mid-range resistance, things get a bit tricky. Although the price action hints at a possible bullish reversal, technical indicators remain stubbornly bearish.
The Awesome Oscillator still suggests bearish momentum, and the On Balance Volume (OBV) is lingering below its early May low, indicative of continued selling pressure.
A Look to the FutureDespite the mixed signals, the long-term outlook isn't all doom and gloom. The recent drop has seen AVAX trading a considerable distance from where it stood in December 2024. The fall from $54 to $18.1 represents a steep 66.3% decline in just six months.
But fear not! The Global In/Out of the Money metric indicates that 65.95% of holders are out of the money, while 27.18% are at the money. This suggests a significant number of holders willing to exit the market at break-even.
Sound the CautionGiven the weak sentiment surrounding altcoins, it's a good idea for Avalanche investors to tread carefully until Bitcoin's dominance starts to plummet and capital rotation into altcoins begins.
Enrichment Data:Although the outlook for Avalanche (AVAX) over the coming weeks is a cautiously optimistic mix, several factors suggest that a potential price recovery and growth could transpire in the medium term:
- Near-term forecasts indicate slight declines or sustained sideways movement before a rally, with the price potentially reaching the $26–$35 range by late summer or early fall 2025 under favorable market conditions and positive ecosystem developments
- Although the technical indicators suggest potential resistance near $26–$35, they also hint at important price levels and periods of increased volatility that could drive further growth in the short term
- Institutional interest, improvements in Avalanche’s scalability and interoperability, and continued adoption growth may increase demand for AVAX tokens, supporting sustained growth beyond 2025.
- The ongoing recovery of Avalanche (AVAX) could be a sign of a potential bullish reversal, as retail investors cash out their profits but smart money investors hold onto their AVAX, and the on-chain activity is on the rise.
- Despite the current bearish technical indicators, institutional interest, improvements in Avalanche’s scalability and interoperability, and continued adoption growth may increase demand for AVAX tokens, suggesting a medium-term price recovery and growth could transpire.
