Crypto Whales Buy $52M of AVAX: Price Impact

The Avalanche (AVAX) stock price recently saw a notable decline on the daily chart, falling below $50. Despite this decline, there is a groundswell of optimism from a large group of investors that could spur the recovery.

avalanche Attracts crypto-whales

The outlook for Avalanche (AVAX) has become increasingly positive, thanks to significant interest from cryptocurrency whales – investors who own between $1 million and $10 million worth of AVAX. Collectively, these whales have added nearly $52 million in AVAX, worth over $2.1 billion, in just three days since early April.

Their significant investments clearly indicate their confidence in the upside potential of the asset's price.

Additionally, Avalanche stands out from the broader cryptocurrency market. Its correlation with Bitcoin is 0.17, indicating that while it may still follow broader market trends, its price movements will not be closely tied to Bitcoin's volatility.

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This independence could pave the way for significant gains. In fact, a high correlation indicates that the altcoin will mirror Bitcoin's price movements, while a low or negative correlation indicates a more independent price movement.

AVAX Price Prediction: Another Rise

Taking these factors into account, he can attest Avalanche prices Up 23.5% from its current price of $47.32, potentially hitting $60. This level sits just above the yearly high of $65.

However, to achieve this goal, AVAX must be able to overcome multiple resistance levels at $50, $53, and $58. The $53 mark, in particular, is a crucial hurdle that has been tested repeatedly.

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If Avalanche (AVAX) struggles to break through these resistance levels, especially the $53 mark, it could lose its bullish momentum and witness a reversal in its uptrend. This scenario would invalidate the optimistic forecasts and could cause the price to fall below $50.