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

Avalanche (AVAX) is experiencing a significant decline in its market value, leading some analysts to predict a further 60% correction. In the past month alone, AVAX has dropped by 25%, with a 14.7% decrease in the last week and a 0.3% decline in the past 24 hours, bringing its current trading price to $24.23. This decline is a notable reversal for an asset that has previously shown strong performance.

Technical analysis of AVAX’s chart patterns suggests that it could face an additional 40% to 60% drop in value. The formation of a head-and-shoulder pattern, a classic indicator of future price decreases, indicates a bearish trend. The neckline support has already been breached, further supporting the bearish outlook. Analyst Patel predicts potential declines to as low as $19 or even $13.

Given these predictions, traders and investors are advised to exercise caution, particularly if considering opening long positions. Strict stop-loss measures are recommended to manage the risks associated with the anticipated volatility.

Adding to AVAX’s market woes is the activity of significant holders moving large volumes of AVAX to major exchanges. This type of movement typically indicates a bearish sentiment among major holders, potentially leading to further declines.

However, despite the current downtrend, some analysts remain optimistic about the altcoin market as a whole. Analyst Captain Faibik suggests that the current correction period could present a prime investment opportunity for long-term investors. Faibik points out that the altcoin sector has shown resilience and growth over the past several months and is merely undergoing necessary corrections after significant gains. They predict a robust recovery in the latter half of the year, urging investors to “buy the dips” in anticipation of a bullish resurgence in Q3 and Q4.