The price of Avalanche (AVAX) may decline in the upcoming days due to the lack of investor interest for the altcoin.

The possible conclusion might be that AVAX fails to break through $45, which would cause the altcoin to consolidate.

Owners Seeking to Offload Their Snowball?

The cost of Avalanche has been below $40 for about a month. Its breach is essential to the altcoin's rise to $45. But there is little probability that this will occur in the near future.

This is due to the fact that the price daily active addresses (DAA) divergence is currently flashing a sell signal. Price deviation from participation suggests possible differences between network activity and market valuation.

Given the low level of confidence among investors, 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.

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?f

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.

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.