Avalanche (AVAX) price has fallen below $50 on the daily chart, but optimism from a substantial group of investors could spark a potential recovery.
Avalanche (AVAX) price could surge by 23% to reach March’s peak as whales accumulate 52 million AVAX in the past three days. AVAX’s low correlation with Bitcoin suggests it may not be influenced by broader market trends.
Bullish Outlook for Avalanche (AVAX) Driven by Whale Interest
Avalanche (AVAX) is garnering increasingly positive outlooks, largely due to significant interest from crypto whales—investors holding between $1 million to $10 million worth of AVAX. Over just three days since April began, these whales collectively acquired nearly 52 million AVAX, amounting to over $2.1 billion.
AVAX Whales Holdings. Source: IntoTheBlock
Their substantial investment signals a strong confidence in AVAX’s potential for price appreciation.
Additionally, Avalanche stands out from the broader crypto market with a low correlation to Bitcoin, measuring at 0.17. This suggests that while AVAX may still be influenced by general market trends, its price movements won’t be as closely tied to Bitcoin’s fluctuations.
This independence from Bitcoin could pave the way for significant gains, as a low correlation implies more autonomous price movements rather than mirroring Bitcoin’s trajectory.
AVAX Correlation with BTC. Source: IntoTheBlock
Avalanche (AVAX) Price Forecast: Potential for 23.5% Increase
Avalanche’s price could experience a significant rise of 23.5% from its current trading price of $47.32, potentially reaching $60. This level sits slightly above the year-to-date high of $65.
However, achieving this target hinges on AVAX’s ability to overcome several resistance levels, including $50, $53, and $58. Of these, the $53 mark is particularly critical, having been tested multiple times in the past.
AVAX Price Chart. Source: TradingView
Should Avalanche encounter difficulty surpassing these resistance levels, especially the $53 mark, it risks losing its bullish momentum and experiencing a reversal in its upward trend. In such a scenario, the optimistic forecast could be invalidated, potentially causing the price to retreat back below $50.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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