Can Avalanche (AVAX) Reclaim $30? Top Analyst Predicts A Dip Before A Bounce

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As a seasoned crypto investor who has seen my fair share of market rollercoasters, I can’t help but feel that Avalanche (AVAX) is at a crossroads right now. The past week’s 24% correction has been tough on all of us, and the overall market sentiment seems to be teetering between extreme fear and uncertainty. But as we all know, what goes down must come up, right?

At present, AVAX (Avalanche) is being traded at a significant juncture following a 24% decline that started last week. The cryptocurrency market is witnessing intense apprehension and doubt, with many altcoins hovering close to their lowest points for the year. Market observers are keeping a close eye on AVAX’s price fluctuations as the market continues to be unpredictable.

Expert analyst and dealer Kaleo recently expressed his views, anticipating that AVAX could experience a deeper drop prior to any potential rebound. This projection has garnered significant interest due to the present market circumstances and the challenges currently confronting AVAX.

Over the next few days, we’ll see if AVAX can stabilize and start recovering or if it will follow the downward trend alongside other cryptocurrencies. The outcome is crucial for both short-term speculators and long-term holders.

Avalanche Holding Above $20

After undergoing intense corrections, AVAX (Avalanche) is now in a consolidation period, marking a striking 73% drop in its value since March. This substantial decrease has piqued the interest of numerous analysts and investors, who are now keenly observing AVAX’s future actions.

Included among them is prominent analyst and investor Kaleo, who has provided an in-depth analysis of X, making correlations between the present arrangement of AVAX and its behavior in the year 2021.

Last year, AVAX experienced a significant price surge, followed by a major correction, and later, an intense upward trajectory that took it to unprecedented highs. Kaleo predicts that a similar sequence of events could occur now, hinting at the possibility of AVAX entering a fresh bull run. His analysis indicates that AVAX may dip down to around $20 before initiating a robust rebound.

It seems Kaleo’s forecast is proving valid, since AVAX has been able to keep its head above the crucial $20 barrier. This robustness hints at potential power and implies that if this support persists, the next aim could be the $30 milestone. Investors are keeping a close eye on these thresholds, as they might signal an imminent substantial uptrend for AVAX.

AVAX Technical Analysis

Currently, AVAX is trading at $22.22, having experienced a modest 4% rise from its low of $21.17 set on Sunday. To sustain bullish momentum, it’s crucial for AVAX to surpass its 4-hour 20 moving average (MA) currently standing at $23.75.

At this stage, we have an important signal suggesting short-term resilience. Typically, crossing this point indicates the beginning of a more reliable sequence where we see both higher maximum prices (highs) and minimum prices (lows) as the value remains above this level.

If AVAX manages to maintain its position above $23.75, it might be a sign that the $30 mark could be within reach. Crossing over $30 would be significant because it could initiate a faster and more pronounced reversal of the current downward trend, potentially leading to a quicker recovery.

As a researcher studying the cryptocurrency market, if AVAX fails to maintain its value above $20, it might be an indication of potential downward movement ahead. In this case, the price could be attempting to find demand at lower levels, with $17 serving as a notable level of support that could halt or reverse any further declines.

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2024-09-04 03:05