Is Avalanche (AVAX) Nearing Collapse? Analyst Predict Further 60% Correction — Here’s Why


In
recent
trading
sessions,
Avalanche
(AVAX)
has
seen
a

significant
drop
in
its
market
value,
with
its
price
tumbling
to
a
six-month
low.

Over
the
past
month,
AVAX
has
plummeted
by
25%,
with
a
14.7%
drop
in
just
the
past
week
and
a
further
0.3%
decrease
in
the
last
24
hours,
bringing
its
current
trading
price
to
$24.23.
This
decline
marks
a
stark
turnaround
for
an
asset
that
has
otherwise
shown
strong
performance
in
previous
months.


Related
Reading

Additional
60%
Correction
Ahead
For
AVAX,
But
Why?

The
persistent
downward
trend
has
not
gone
unnoticed
in
the
crypto
community.
Technical
analysis

reveals
troubling
signs,
with
the
AVAX
chart
displaying
a
potential
for
further
declines.

Crypto
analyst
Patel,
referencing
the
current
chart
patterns,
speculates
that
AVAX
could
soon
face
an
additional
40%
to
60%
drop
in
its
value.
The
formation
of
a
head-and-shoulder
pattern,
a
classic
technical
indicator
of

How To Get Free Crypto  

future
price
decreases,
drives
this
bearish
outlook.

Patel
pointed
out
the
critical
nature
of
the
head-and-shoulder
pattern
forming
on
the
AVAX
chart,
noting
that
the
neckline
support
has
already
been
breached.
This
break
suggests
a
bearish
continuation,
with
Patel
forecasting
potential
declines
to
as
low
as
$19
and
possibly
even
$13.

Given
these
predictions,
Patel
advises
traders
and
investors
to
exercise
caution,
particularly
those
considering
opening
long
positions.
He
emphasizes
the
importance
of
implementing
strict
stop-loss
measures
to
manage
risks
associated
with
the
anticipated
volatility.

AVAX
price
is
moving
downwards
on
the
1-hour
chart.
Source:
AVAX/USDT
on

TradingView.com

External
Influences
And
Optimistic
Counterpoints

Further
compounding
AVAX’s
market
woes
is
the
activity
of
significant
holders
moving
large
volumes
of
AVAX
to
major
exchanges.

Prominent
on-chain
investigator
ZachXBT
has
recently

linked
the
ongoing
decline
in
AVAX’s
value
to
significant
transactions
by
a
specific
entity
identified
as
‘0x32…4f30.’

This
entity
has
reportedly
transferred
approximately
1.96
million
AVAX,
valued
at
$54.2
million,
to
major
exchanges,
including
Coinbase,
Binance,
and
Gate,
and
has
also
facilitated
transfers
via
THORChain.

This
type
of
large-scale
movement
typically
indicates
a
bearish
sentiment
among
major
holders,
potentially
leading
to
further
declines
if
the
trend
continues.

Coinbase Banner  

Despite
the
prevailing
downturn
in
AVAX’s
performance,
some
analysts
remain
optimistic
about
the
broader
altcoin
market.
Analyst
Captain
Faibik
suggests
the
current

correction
period
could
be
a
prime
investment opportunity
for
long-term
investors.

According
to
Faibik,
the
altcoin
sector
has
shown
resilience
and
growth
over
the
past
several
months
and
is
merely
undergoing
necessary

corrections
after
significant
gains.


Related
Reading

He
predicts
that
the
latter
half
of
the
year
could
witness
a
robust
recovery,

advising
investors
to
“buy
the
dips”
in
anticipation
of
a
bullish
resurgence
in
Q3
and
Q4.

Featured
image
created
with
DALL-E,
Chart
from
TradingView

Go to Source
Author: Samuel Edyme


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