As a seasoned market analyst with over two decades of experience under my belt, I have seen bull runs and bear markets come and go. The current situation in the crypto market, particularly the price action of Avalanche (AVAX), reminds me of the 2021 rally that left many investors richer than they had ever imagined.
On Tuesday, the cryptocurrency market experienced a bullish shift as American voters geared up for the election of their 47th president. With anticipation building towards the 2024 presidential election potentially sparking a crypto market surge, an analyst observed that Avalanche’s price increase echoes its performance from 2021.
Today, the value of AVAX in the crypto market stands at approximately $24.6, representing a 5.6% increase over the day. As per CoinGecko’s latest data, Avalanche’s market capitalization amounts to about $9.8 billion, and its 24-hour trading volume is $354.2 million.
Avalanche Price Action Mimics 2021, Analyst Predicts $347 Spike
In a recent tweet, crypto analyst fabioviriba highlights interesting similarities between AVAX’s current price trajectory and its 2021 rally. The attached chart highlights three distinct phases in Avalanche price prediction. It begins with an extended accumulation period, followed by an initial upswing leading to a corrective phase, setting the stage for the actual rally.
This pattern led to a massive surge from $3 to $147 in 2021, a staggering 4,800% gain.
The bullish narrative surrounding the U.S. presidential election has sparked bottom formation for most major altcoins, including AVAX. Over the past five weeks, the AVAX price traded sideways, struggling to sustain above the $30 psychological level.
The daily chart’s consolidation indicates the emergence of a bullish reversal pattern known as the inverted head and shoulder formation. As the Avalanche price appears poised for a breakout from this InH&S pattern, analysts anticipate a possible jump to $347, which could result in an astounding potential increase of 1340%.
AVAX Price Poised for Bullish Reversal Amid Rising Whale Activity
As an analyst, I’ve noticed a surge in significant transactions involving Avalanche (AVAX), indicating increased activity from large holders. This could be a sign of a forthcoming bullish reversal for the price of AVAX. According to data from Intotheblock, the number of large transactions spiked to 671, reaching its peak on November 3.
An increase in significant trades could suggest increased action from ‘whale’ or institutional investors, which might boost the value of cryptocurrencies in the altcoin market. Previously, such investor activity has been associated with significant market fluctuations.
Based on the worldwide In/Out of Money measure, it’s predicted that Avalanche’s price could encounter substantial selling activity around the $28.79 mark. This is due to approximately 26.63 million AVAX being held by roughly 1.1 million wallets at this level.
Another resistance investor should look for is $44.82, backed by 19.66M AVAX coins held among 1.09M.
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2024-11-05 21:30