Avalanche (AVAX) Price Forecast: Social Media Trend Hints at $50 Breakout

 Key Insights:

• Avalanche (AVAX) opening price for Friday, Dec 29, stands at $41, an 18% drop from the weekly timeframe peak of $50 recorded on Dec 24. 
• The share of AVAX mentions across crypto media channels has declined critical juncture, hinting at a potential trend reversal.  
• Historical accumulation trends highlight how potential bulls continue to defend the vital $40 support fiercely amid the weekly long bearish headwinds. 

Avalanche (AVAX) opening price stood at $41 on Friday morning, an 18% decline from the weekly timeframe peak of $50 registered on Dec 24. Having faced a week-long wave of bearish headwinds, a critical on-chain metric suggests that AVAX could now be on the verge of a trend reversal. 

As the media hype surrounding Avalanche cools, will prospective investors consider it the perfect time to enter the AVAX markets? 

Social Media Buzz Surrounding Avalanche is at 30-day Low 

Since Avalanche price rejected at the $50 psychological resistance on Dec 24, the bull have struggled to get back in the driving seat. 

After battling week-long bearish headwinds culminating in 18% price downside, the social media hype that heralded Avalanche’s ascent to a 20-month peak has now cooled. 

As expected, with Avalanche losing its spot on the top gainers list, online crypto communities are paying less attention to the AVAX coin. 

This week, Santiment’s Social Dominance on-chain metric illustrates this decline in Avalanche’s media traction vividly. 

As depicted below, AVAX Social Dominance fell from its peak of 3.58% on Dec 12 to hit a monthly low of 0.99% on Dec 25, just as prices began to drop, as has failed to break above 1.5% ever since. At press time on Dec 29, AVAX Social Dominance is currently trending at 1.33% 

The Social Dominance metric measures the percentage of social media mentions a cryptocurrency attracts in reference to the top-50 most talked about projects. The steep decline observed above shows that Avalanche has attracted a considerably lower share of media traffic over the past week. 

When Social hype surrounding a high-performing crypto asset cools during a consolidation phase, it sometimes evolves into a bullish signal. Often times, strategic prospective investors and bullish swing traders look to avoid buying at the market top.

They often consider lower values of Social Dominance a sign that the market is no longer overvalued by FOMO. Hence, the sharp decline in social media buzz to could signal perfect timing for these strategic investors to enter the AVAX market as a local bottom. 

Notably, slight increase in AVAX Social Dominance from 0.99% to 1.34% between Dec 25 and Dec 29 could be vital signal that this bullsih scenario is already underway. 

AVAX Price Forecast: Bumpy Road to $50 

The Social traction trends displayed by Avalanche this week suggests that the AVAX price could be on the verge of a major trend reversal. If strategic investors consider it perfect time so buy the dip as hinted above, AVAX price could enter a leg-up toward $50 in the days ahead.

However, the historical AVAX buy/sell trends show that the $45 area currently poses a significant bump on the road to $50. 

The In/Out of the Money Around Price (IOMAP) data groups the current Avalanche investors according to their entry prices.

It currently shows that 46,760 current holders will break-even between $44.35 to $45.28. If those holders look to take some profits, AVAX price could struggle to break out of that resistance cluster.

But if the bullish prospective traders consider the drop in social media buzz as an entry signal, AVAX price will likely garner enough momentum smash that resistance and edge toward $50 as predicted.

On the downside, however, the bulls can rely on the $40 area for major support. At the moment 143,000 holders that bought 7.3 million at the minimum price of $39 could offer significant support. To avoid slipping into loss positions, those investors will likely HODL firm and make more covering purchases.