Between decline and hope: What does the future hold for crypto AVAX?

Avalanche's AVAX crypto token is currently going through a tumultuous period. This month, it actually showed a drop of 14%. Upstream, massive exchange outflows and increased trading volume reveal active investor accumulation. Deciphering the current trend!

A stylized, round and massive bomb bearing the AVAX crypto logo

Worrying technical signals for crypto Avalanche

Technical analysis shows that AVAX is moving in a descending triangle pattern. This bearish formation is characterized by:

  • decreasing peaks,
  • horizontal support at $34.18.

Crypto experts are closely monitoring this critical level. Depending on the Fibonacci levels, a breakout could indeed result in objectives to:

  • $29.17,
  • $24.69,
  • $22.18.

https://twitter.com/ali_charts/status/1882563461965545873

AVAX crypto price analysis

Such a break could even cause a cascade of selling pressure.

Despite this precarious technical situation, the crypto Avalanche boasts an impressive trading volume of $702.2 million. The latter thus recorded an increase of 38%. This highlights active investor engagement, even in a bearish environment.

“Traders seem ready to exploit any potential rebound,” explains analyst Ali who identifies a critical zone between $33 and $37. A break above this resistance could lead to a 40% crypto rally. Which would provide a significant opportunity.

Massive accumulation: investors are banking on a rebound in the AVAX cryptocurrency

Net spot flow data shows that 2.18 million AVAX crypto tokens have left the stock exchanges since December. This reflects a strong accumulation. This trend contrasts with the massive inflows recorded in November. These had coincided with significant sales during price peaks.

According to experts, these regular releases reduce selling pressure. But not only that! They also demonstrate the confidence of crypto investors in Avalanche's long-term potential.

Outlook: AVAX prepared for a possible increase?

The forecasts of some crypto analysts are optimistic. According to CoinCodex for example, AVAX could reach $70.31 by January 30with an expected average of $50 for February.

These prospects are attracting the attention of investors, while the crypto-asset currently remains at $36.03. It thus recorded a drop of 11.23% in one week. This prediction is based on:

  • the increase in the volume of trade,
  • exchange outputs.

These factors indeed signal a consolidation before a possible major movement.

AVAX's dynamics thus reflect a mixture of technical challenges and investor optimism. If critical levels are crossed, this cryptocurrency could hold some nice surprises in February 2025. Especially since it is already among the favorite assets this month!

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