Avalanche (AVAX) Price Is Vulnerable to a 12% Decline

Avalanche ($AVAX) price could face a drawdown in the coming days, given that the altcoin is not receiving much support from its investors.

The potential outcome could result in $AVAX failing to breach $45, leading to consolidation for the altcoin.

Are Holders Looking to Sell Their Avalanche?

Avalanche’s price for nearly a month has been hovering under the $40 mark. Breaching it is crucial for the altcoin to shoot up to $45. However, the chances of this happening in the coming days are bleak.

This is because the price daily active addresses (DAA) divergence is flashing a sell signal at the moment. Deviation of price from participation indicates potential discrepancies between market valuation and network activity.

Avalanche Active Addresses. Source: IntoTheBlock

Since the investors’ confidence is low, this could lead to potential selling as $AVAX holders opt to book profits.

Consequently, the altcoin’s price could take a bearish hit.

This uncertainty of $AVAX price’s outcome is also being reflected amongst the new investors that are joining the network. At the moment, the adoption rate of Avalanche is at 16%. This means that out of 100 new $AVAX holders, only 16 are conducting transactions on the network.

Read More: How To Buy Avalanche ($AVAX) and Everything You Need To Know

Avalanche Adoption Rate. Source: IntoTheBlock

Put, this shows that the project is potentially losing traction in the market, which could slow down capital inflows.

$AVAX Price Prediction: Is $45 in Sight?

Avalanche’s price, trading at $37 at the time of writing, is struggling to close above $40. This has occurred multiple times in the past, and flipping it into support usually leads to $AVAX reaching the crucial psychological support of $45.

Thus, based on the aforementioned bearish cues, Avalanche’s price could be noted to have a drawdown toward $32. This would result in a potential 12% correction on the daily chart. As a result, $AVAX could continue its consolidation.

Read More: Avalanche ($AVAX) Price Prediction 2024/2025/2030

Avalanche Price Analysis. Source: TradingView

However, if the $40 resistance is breached, Avalanche’s price could attempt to chart a 14.8% rally toward $45. This would invalidate the bearish thesis, initiating recovery for the asset.