At the end of July, Avalanche (AVAX) price had risen above $33. As of the time of writing, the approximately $12 loss from this level could deepen if bearish pressure continues. It is worth noting that this situation is not just a rumor but also has reasons reflected in the charts.
AVAX Comments
In/Out of the Money Around Price (IOMAP) has become one of the most notable indicators for AVAX’s future prediction. This on-chain metric reveals addresses holding a token profitably, at the breakeven point, and at a loss.
Investors can use this data to get an idea of where a cryptocurrency might head. Generally, the more addresses at a price level, the stronger the support or resistance it provides.
For AVAX, this situation shows that 7.26 million tokens were purchased at an average price level of $21.12 by 82,670 addresses. This group is seen waiting profitably just above the breakeven point.
On the other hand, 1.02 million AVAX were purchased at $19.95 by 70,930 addresses, and they are in profit. The area between these two levels stands out as points where sales might occur and investors might want to exit the market.
If AVAX fails to stay above the $21 level due to high buying pressure, the next level for the token could be around $19.62.
AVAX Price Prediction
Considering recent price movements, AVAX shows an average performance compared to the crypto market. For instance, the cryptocurrency experienced a 40% price correction between July 22 and August 6, worrying investors.
Additionally, it continues to stay below the 20-day EMA (blue). Generally, if an asset’s price continues to trade above the EMA, the trend is upward.
Therefore, AVAX’s current position below the EMA indicates a downward movement. If this trend continues and bulls remain weak, AVAX could fall to $19.56. More importantly, a failed price movement here could see AVAX drop to $17.03.
A reversal of the trend to an upward direction could push AVAX’s price to $23.07. If this trend continues, the EMA level at $24.25 could be surpassed, and the price could rise to $26.64.
