Avalanche (AVAX) price has recently seen a notable decline on the daily chart, falling below $50.
Despite this economic downturn, there is a wave of optimism from major investor groups that could spur a recovery.
Avalanches attract crypto whales
Avalanche's outlook is becoming increasingly positive thanks to significant interest from crypto whales, investors who own between $1 million and $10 million worth of AVAX. These whales have added a total of nearly 52 million to his AVAX in just three days since the beginning of April, bringing its value to more than $2.1 billion.
Their large investments strongly indicate their confidence in the asset's price appreciation potential.
Furthermore, Avalanche stands out from the broader crypto market. Its correlation with Bitcoin is low at 0.17, suggesting that while it may still follow the overall market trend, its price movements are not as closely tied to Bitcoin's movements.
This independence can set you up for big profits. In fact, a high correlation suggests that the altcoin mirrors Bitcoin's price movements, while a low or negative correlation indicates more independent price movements.
AVAX price prediction: rising again
Considering these factors, Avalanche's price could reach $60, an increase of 23.5% from the current trading price of $47.32. This level is just above the year-to-date high of $65.
However, achieving this goal will depend on whether AVAX can overcome several resistance levels at $50, $53, and $58. The $53 value in particular is a significant barrier that has been tested many times.
Read more: How to buy Avalanche (AVAX) and everything you need to know
If Avalanche struggles to break above these resistance levels, especially the $53 mark, it could lose bullish momentum and reverse the uptrend. This scenario could negate the optimistic predictions and cause the price to fall below his $50.
Disclaimer
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