Crypto Whales and Impact on Avalanche (AVAX) Price: Analysis and Predictions

2024-04-17, 07:34

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![](https://gimg2.gateimg.com/image/article/1713338828sdfx.jpeg)
## [TL; DR]
The <a href="/ru/price/avalanche-avax" target="_blank" class="blog_inner_link">Avalanche crypto</a> maintains a bullish outlook on the higher price charts.

Crypto investors remain optimistic about AVAX’s future price movement.

AVAX should overcome several key resistance levels including $50, $53, $58, $63, $65, and $67 to attain new highs.

## Introduction 
Cryptocurrencies often experience price dips and bounces which affect investor behaviour. The prevailing market sentiment usually impacts the price dynamics of individual coins and tokens. For example, the <a href="/ru/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> network has been experiencing transaction failures due to congestion.

In this analysis, we focus on [the current price and network performance of the Avalanche crypto](https://www.gate.io/price/view/avalanche-ecosystem "the current price and network performance of the Avalanche crypto"). We will also assess the possibility of the coin’s future positive price changes in light of its low correlation with Bitcoin. Lastly, we shall come up with a short—to medium-term [price prediction for AVAX](https://www.gate.io/price-prediction/avalanche-avax "price prediction for AVAX").

##  Avalanche Experiences Volatile Price Movement amid Market Uncertainty 
Avalanche (AVAX), the largest 10th cryptocurrency by market capitalization, has been experiencing high price volatility which has shaken investors’ <a href="/ru/price/optimism-op" target="_blank" class="blog_inner_link">Optimism</a>. For example, during the first quarter of the year the price of AVAX has been fluctuating between $51.34 and $58.12. As well, within the last six months the AVAX price increased by around 366%.

March was one of the best periods for the cryptocurrency as its value gradually increased from $41.92 on 1 March to $62.73 on 18 March before it retraced to $53.64 as the following diagram indicates. 
![](https://gimg2.gateimg.com/image/article/17133390031.jpeg)
Avalanche Price Movement for March 2024 -[ CoinGecko](https://www.coingecko.com/en/coins/avalanche " CoinGecko")

As you note, the Avalanche Avax price rally that occurred in March did not continue into April as it is nose-diving. For example, at the time of publication Avax is trading at $35.51 after losing 33.66% within the last two weeks and by 32.1% in a one-month period. However, AVAX’s recent price dip seems to be a short-term phenomenon as the market maintains high optimism. 
Here is the [analysis of AVAX architecture](https://www.gate.io/learn/articles/in-depth-analysis-of-avalanche-architecture/2254 "analysis of AVAX architecture")
## Whale Accumulation and Market Confidence
In spite of the Avax price downturn investor optimism remains high as the whale activity indicates. The whales’, individuals and organizations that hold between $1 million to $10 million worth of AVAX, substantial interest in the cryptocurrency should be a catalyst for its price recovery. The crypto whales buy AVAX due to its future price  potential.

For instance, within the first three days of April the Avax whale holdings increased by 52 million coins that translated to over $2.1 billion. The next graph indicates the increase in the total quantity of the AVAX coin the whales hold. 
![](https://gimg2.gateimg.com/image/article/17133390522.jpeg)
AVAX Whales Holdings – [IntoTheBlock](https://app.intotheblock.com/ "IntoTheBlock")

As observed on <a href="/ru/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a>, the whale holdings started rising around the beginning of March. That substantial whale Avax investment indicates the confidence they have in the cryptocurrency. This also shows the potential Avax has for growth in the short term to long-term periods.

Another factor that is supporting the investors’ optimism and confidence is the fast approaching halving event, which is about five days away. Based on the previous crypto market trends <a href="/ru/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> is likely to rally after the halving event. This may also trigger a market-wide rally which will push the Avax price up.

Join the course: [Introduction to Avalanche](https://www.gate.io/learn/course/introduction-to-avalanche "Introduction to Avalanche")
## Avalanche’s Low Correlation with Bitcoin 
One notable scenario is how AVAX is distinguishing itself from the entire crypto direction. For example, unlike the other pioneering cryptocurrencies such as <a href="/ru/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> and Solana Avax does not have a strong correlation with bitcoin. As a fact, the Avax bitcoin correlation stands at 0.17 which suggests that it will not closely follow BTC price trend despite aligning with the broader crypto market trend. The following graph indicates the Avax bitcoin correlation.
![](https://gimg2.gateimg.com/image/article/17133391113.jpeg)
Avax Bitcoin Correlation –[ IntoTheBlock](https://app.intotheblock.com/ " IntoTheBlock")

This low Avax bitcoin correlation has much significance to the cryptocurrency’s current and future price movements. A high BTC correlation shows that the value of the cryptocurrency would mirror that of bitcoin. Nevertheless, a low or negative correlation indicates that the two cryptocurrencies are completely independent of the other. Thus, Avax’s market independence from bitcoin shows that it can perform highly even if bitcoin is bearish. 
## AVAX Price Prediction and Potential Rally 
As at 7 April AVAX was showing a strong bullish momentum that could see its price rise towards the $60 price level. Even if its price is still slightly depressed the possibility of a strong uptrend is there. Nonetheless, there are several Avalanche resistance levels to breach such as $50, $53 and $58 points. The $53 mark poses the greatest hurdle in AVAX’s upward price move. This is because its failure to overcome this key resistance level may see it falling below $50.

The AVAX price chart analysis during the first week of April indicated that its price might surge by 23% propelling it from $47.32 to $60. At that time the indication showed an outside chance that the AVAX price might shoot above $65. 
## The potential of AVAX to Reach New Highs
Several factors may drive the AVAX towards new highs within the next few months. According to [CoinCodex’s AVAX price prediction it may](https://coincodex.com/crypto/avalanche/price-prediction/ "CoinCodex’s AVAX price prediction it may") reach $118 by the end of April as the next chart indicates. 
![](https://gimg2.gateimg.com/image/article/17133391684.jpeg)
AVAX Price Prediction - [CoinCodex](https://coincodex.com/crypto/avalanche/price-prediction/ "CoinCodex")

As the graph shows, CoinCodex forecasts the <a href="/ru/price/avalanche-avax" target="_blank" class="blog_inner_link">Avalanche price</a> to reach $46 within the next 6 days and $118 within one month. Although its weekly Greed and Fear index is bearish, its monthly one stands at 72% showing a long term bullish market outlook. Currently, though, the AVAX RSI is within the overbought zone.
 
Although its price level is below the [200-day SMA it is above the 50-day one](https://coincodex.com/crypto/avalanche/price-prediction/ "200-day SMA it is above the 50-day one"), indicating that it is still well-positioned to make a strong rally within a short period. It is important to note that if [many investors buy Avalanche](https://www.gate.io/how-to-buy/avalanche-avax "many investors buy Avalanche") its price may rise towards $70. However, to do so it has to overcome several additional resistance levels at $63, $65, and $67.
## Challenges to Bullish Outlook 
The greatest challenge to Avalanche Avax price rally is likely to be waning investor confidence if the coin turns bearish in the long run. One of the factors that has contributed to the recent AVAX price dip is the decrease in liquid staking on the network. If this trend continues it may lead to a sustained AVAX price fall. Negative crypto investment trends may also force the Avalanche price to stagnate or fall further.

## How to buy Avalanche on Gate.io 
As a general AVAX guide, this price retracement presents a chance for investors to acquire more coins before its next impulsive move. One of the most secure platforms to <a href="/ru/how-to-buy/avalanche-avax" target="_blank" class="blog_inner_link">buy Avalanche</a> is Gate.io. 
## How to buy LINK on Gate.io
To buy Avalanche (AVAX) on Gate.io you need to follow several simple steps. First, create and verify your account on the exchange. If you already have an account, login and select the payment method you want to use.

You can use a credit/debit card, wire transfer or P2P trading. If you hold any major cryptocurrencies like bitcoin, ETH and USDT you can simply convert them to AVAX. Now, to start the buying process you hover your cursor on [Buy Crypto](https://www.gate.io/crypto/buy/with-credit-card?method=card&fiat=USD "Buy Crypto") and select your preferred payment method, as the following picture indicates.
![](https://gimg2.gateimg.com/image/article/17133392525.jpeg)
Once you click on your preferred payment method, follow the instructions you get.
## Conclusion 
During the first week of April Avalanche looked very bullish in both the short timeframe and the higher price charts. Although AVAX has a very low correlation with Bitcoin the oncoming bitcoin halving may lead to a crypto market bullish momentum which can positively impact the <a href="/ru/price/avalanche-avax" target="_blank" class="blog_inner_link">Avalanche</a> coin price.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>