Decoding Avalanche (AVAX) Price Patterns & The Quest For The Bottom

Aug. 24, 2023
Decoding Avalanche (AVAX) Price Patterns & The Quest For The Bottom

Cryptocurrency analytics firm IntoTheBlock took to Twitter yesterday to share concerning news about Avalanche’s native token, AVAX. The tweet revealed a startling statistic that has caught the attention of the cryptocurrency community worldwide.

According to data from IntoTheBlock, the­ number of individuals holding $AVAX and currently making profits has experienced a significant decline­, reaching an unprecede­nted all-time low. This occurrence­ has sparked inquiries among investors and analysts regarding the potential consequences for the future traje­ctory of this cryptocurrency.

To shed light on this perplexing situation, IntoTheBlock released a follow-up tweet to clarify the circumstances. The firm acknowledged the widespread curiosity surrounding the implications of this distressing statistic for the future prospects of $AVAX.

Addressing these concerns, the tweet hinted at an investigation into historical instances of $AVAX’s “max pain” moments to discern patterns that might provide insight into the current predicament.

Historical Analysis: $AVAX’s “Max Pain” Moments

IntoTheBlock’s analysis took a retrospective approach, examining previous occasions when $AVAX holders found themselves in a similarly challenging position. The findings were intriguing and showcased recurrent patterns over the past years. Notable observations from the analysis included:

  • July 2021: Over 85% of $AVAX holders were confronted with losses during these two months.
  • May-July 2022: A striking similarity emerged as holders experienced another two-month stretch where losses exceeded 90%.
  • Aug-Oct 2022: The trend persisted, with another two months witnessing more than 90% of token holders face losses.
  • Nov-Jan 2022: This trend extended into the end of the year and the start of the new year, with losses continuing to affect over 90% of holders.
  • Present Scenario: As of the latest data, the situation has endured for approximately two weeks, with more than 90% of holders once again grappling with losses.

The analysis also acknowledged that some instances of holders being at a loss were fleeting, as seen in occurrences like June 2023 and December 2020.

Speculation continues to grow within the cryptocurrency community as discussions about the potential consequences of this re­cent developme­nt persist. Investors and analysts are close­ly monitoring any indications that could signal a shift in fortunes for $AVAX holders.

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Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.