Avalanche’s (AVAX) price is at a monthly high, and it is attempting to breach past a crucial resistance that might face some resistance.
AVAX investors seem to be aiming to book profits as they have grown, which might hamper the potential for profits.
Avalanche Investors Move to Sell
Avalanche’s price at $31 is struggling to breach a crucial resistance level, which could enable recovery and also bring profits to AVAX holders. The target for the altcoin post-recovery initiation is $34.
This is because, according to the Global In/Out of the Money (GIOM) indicator, about 11 million AVAX have been bought between $29 and $34. This supply, worth over $358 million, would become profitable once Avalanche’s price breaches $34 .
However, about 5 million AVAX have already achieved profitability , as the price reached $32, which threatens the rest of the profits.
Read More: How To Buy Avalanche (AVAX) and Everything You Need To Know
This is because the investors who are noting gains are also looking to secure them. Upon observing the active addresses by profitability, it can be noted that about 39% of the participating investors are in profit.
This is concerning because these investors are prone to selling, and their domination in the market exceeding 25% has a considerable impact on the price.
Thus, Avalanche’s price could bear the brunt of this selling.
AVAX Price Prediction: The Key Fibonacci Level
Avalanche’s price, trading at $31 , is attempting to breach through the 23.6% Fibonacci Retracement line at $33. This Fib level is also known as a bear market support floor, and securing it could help AVAX prevent any further downtrend.
However, the signs of selling visible among the investors could hold AVAX back from breaching. Consequently, the altcoin might end up remaining consolidated within $33 and $27.
Read More: Avalanche (AVAX) Price Prediction 2024/2025/2030
Breaching either of them would invalidate the bearish-neutral thesis. A breakout would trigger further recovery, while a breakdown would send Avalanche’s price to $24.
