Avalanche (AVAX) price has seen a dip of around 13% this week, marking one of its worst performances ever. A selling spree undertaken by early investors has pressured the prices of the token. However, market participants are now questioning if the token will pick pace in the second half of the year or if the worst is yet to come.
At present, the coin is trading at $24.76, being down 2.2% as compared to the same time last day.
AVAX Sees Pressured Selling
Bloomberg in its recent report highlights that digital tokens known as altcoins, like Avalanche, DYDX, and PYTH, appear to be experiencing an early "crypto winter" due to sales made by a few of the original investors and founders of these projects. According to CoinMarketCap, since the price of Bitcoin peaked in March, the market capitalization of altcoins other than Ether or stablecoins has decreased by about thirty percent.
Since Bitcoin commanded more than half of the estimated $2.4 trillion digital asset market, all other tokens were given the moniker in the early days of cryptocurrency as a way to differentiate themselves from the original digital currency.
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Will AVAX Fall Further?
At present, the Avalanche price forecast indicates that the cryptocurrency's value is expected to increase by 229.87% and hit $80.50 on July 24, 2024. However, this scenario will only play out if a bullish sentiment prevails among investors which can stop the excessive selling.
Other technical indicators indicate that the current mood is bearish, and the Fear & Greed Index is currently reading 51 (Neutral). Over the previous 30 days, Avalanche recorded 10/30 (33%) green days and 11.95% price volatility.
Data currently indicates that there is an overall bearish feeling for the Avalanche price prediction, with 7 technical analysis indicators indicating bullish signs and 23 indicating bearish signals.
On the other hand, if Avalanche's (AVAX) price falls to less than the current support level, it could slide below the support level. At present, this support level is set at $20, which is a strong support level.
With each passing month in the second half of 2024, AVAX's development track adds value for its subscribers. Despite its gloomy outlook, many analysts believe that AVAX will trade between $30.81 to $43.11 in the second half of 2024.
