Despite the recent bearish breakout, Avalanche (AVAX) investors remain determined to convert the resistance into support and refuse to accept any losses. This resolute attitude is reflected in the movement of coins from shorter-term holders to longer-term holders, indicating a growing confidence among AVAX holders. In the past three weeks, long-term holders have accumulated over 4% of the circulating supply, increasing their wallet size by 4.2 million AVAX, equivalent to $161 million. This accumulation has led to a total of 20.72 million AVAX tokens in circulation.
Avalanche supply distribution data from IntoTheBlock suggests that despite the decrease in price, AVAX holders have not given in to bearish sentiment and still believe in a potential recovery.
The MACD indicator also supports a strengthening bullish sentiment. This technical indicator identifies changes in momentum and potential trend reversals. Currently, the MACD is showing a bullish crossover with a green bar on the histogram, marking the first occurrence in a month. This could potentially signal the beginning of a rally for Avalanche.
The MACD indicator chart, sourced from TradingView, further highlights the growing optimism among AVAX investors.
Moving forward, based on the observed bullish sentiment, Avalanche has the potential to break the $40 mark and potentially rise even higher. The next hurdle for AVAX lies at $44, and a successful breakthrough could trigger further gains towards the $48 – $50 range, where the lower boundary of the ascending channel is located.
However, if AVAX fails to surpass the $44 resistance, it may experience a decline towards $33. A breakdown of this support level would invalidate the bullish scenario, and AVAX could potentially fall to $29 or even $27.
Please note that this information is for informational purposes only and should not be misconstrued as financial or investment advice. It is important to conduct independent research and consult with a professional before making any financial decisions.