Avax forecast

**Avalanche (AVAX) Price Forecast**: The future of AVAX appears challenging due to a confluence of factors indicating bearish sentiment and potential for further price decline.

1. **Recent Price Drop and Market Sentiment**:
- The price of Avalanche (AVAX) has experienced a significant drop, from $29.55 to $26.19 in the last seven days, mirroring a wider sell-off amid market uncertainty.
- This correction is attributed to a rounding top pattern on the daily chart, which typically signals a bearish trend reversal.
- The Relative Strength Index (RSI) is below 50.00, indicating a bearish dominance and potential for further declines.
2. **Funding Rate and Short Positions**:
- The Funding Rate for AVAX is negative at -0.017%, suggesting a bearish bias as short positions are rewarded over long positions.
- This indicates aggressive selling in the spot market, forcing derivatives traders to increase their short positions.
3. **Address by Time Held and Investor Behavior**:
- The number of AVAX holders who have held the token for over 365 days has refrained from selling, while those who accumulated between the last 30 days and the last 12 months have been liquidating.
- This suggests skepticism among short-term holders, which could lead to further price declines if the trend continues.
4. **Technical Analysis and Price Targets**:
- The daily AVAX/USD chart shows a potential drop to $25.54, with the RSI indicating bearish territory.
- However, if the RSI reaches below 30.00, AVAX may become oversold, potentially leading to a rebound.
5. **Market Volatility and Delisting Threats**:
- AVAX is facing delisting threats, which could further weaken investor confidence and contribute to price declines.
- The volatility in the market, coupled with the threat of delisting, could lead to increased selling pressure.
6. **Long-Term Price Predictions**:
- Despite the short-term bearish outlook, long-term forecasts suggest that AVAX could see gains. For instance, it is predicted to trade between $272.14 and $333.25 by 2030.
- However, these long-term predictions are contingent upon market conditions and are not a guarantee of future performance.

In conclusion, the current indicators point to a bearish outlook for AVAX in the short term. Traders should monitor the RSI and funding rate closely, as these can signal when the token may be oversold and due for a rebound. However, the potential for further price declines due to market volatility and bearish sentiment among short-term holders cannot be ignored. Investors should exercise caution and consider these factors when making investment decisions.