The price of Avalanche (AVAX) broke through the bottom trend line of the ascending channel this month after challenging it for several weeks.

However, as they prioritise profits over losses, investors seem intent on turning that resistance back into support.

Verdant Sign for Avalanches

The price of Avalanche indicates that there is room for growth because of the increased conviction that AVAX holders have shown. The supply shift from short- and mid-term holders to long-term holders—who are known to hold onto their supply for at least a year—demonstrates this.

Holders of AVAX have amassed almost 4% of the total supply over the last three weeks for more than a year. As a result, the amount in their wallets has increased by 4.2 million AVAX, valued at $161 million, to 20.72 million AVAX.

This shows that despite the price decline, AVAX holders have not given in to the bearishness and are still hoping for recovery.

The market also aligns with the investors’ sentiment as bullish cues are being flashed across price indicators like the Moving Average Convergence Divergence (MACD). This is a technical indicator used to identify changes in momentum and potential trend reversals in a security or asset.

When writing, MACD notes the formation of a bullish crossover with a green bar on the histogram. This is the first such instance in a month, marking the initiation of a potential rally.

AVAX Price Forecast: Will It Rise Again?

The current price of Avalanche, which is $38, is almost at $40, and given the apparent bullishness, it may increase even higher. AVAX is up against a hurdle at $44, and breaking through there might allow a surge to the bottom trend line of the ascending channel the altcoin was in, which is between $48 and $50.