Avalanche (AVAX) Price Prediction: Bears Eyeing the $25 Target

Avalanche: Total Addresses With Balance. Source: IntoTheBlock

This trend indicates a rising user adoption and network expansion but slower growth in the latter period. So, we should keep an eye on potential changes in user engagement or market sentiment.

Historical Profitability of Addresses Holding AVAX

Analyzing the historical profitability of addresses holding AVAX reveals a shift in participants’ economic sentiment. The Out of the Money area (red) in the chart shows the percentage of AVAX addresses at a loss. The At the Money area (gray) shows the percentage of AVAX addresses at break even. The In the Money area (green) represents addresses in profit.

On May 31, 2024, 36.69% of active addresses were Out Of The Money. This percentage increased to 49.94% by June 17, 2024, reflecting a growing number of participants holding unrealized losses. The proportion of Break-Even addresses (At the Money) started at 5.89% and decreased to 0.78% by June 17, 2024.

This decrease in At the Money addresses suggests that fewer participants are at their cost basis. As more of them are now experiencing losses. Initially, 57.42% of addresses were in profit (In the Money), which decreased to 49.28% by the end of the period.

Additionally, the upward trend in the Out Of The Money category from 36.69% to 49.94% underscores a growing bearish sentiment among holders. The consistent decline in addresses At The Money suggests that the price movements have pushed most participants away from their cost basis and into loss territory.