The native token of Avalanche, AVAX, is showing signs of a bearish trend and is expected to experience a price decline. However, the current market is unpredictable, with some cryptocurrencies seeing price surges while others face notable price drops.
AVAX has reached a crucial support level of $35 but is struggling to maintain it. In the past, the altcoin has reached this level multiple times and each time it has resulted in a price surge. However, the current market sentiment suggests that AVAX may not be able to hold this level.
Based on recent price action and historical momentum, if AVAX fails to hold the $34.50 level and closes a daily candle below it, the price could drop by 14% to reach $29 in the coming days.
In addition to the bearish price action, AVAX’s Relative Strength Index (RSI) is currently near the oversold area, indicating a potential price reversal. However, a reversal seems challenging for the altcoin.
Traders have a bearish outlook on AVAX, as indicated by the on-chain analytics firm Coinglass. The long/short ratio for AVAX stands at 0.85, showing bearish sentiment among traders. The data also reveals that 54.5% of top AVAX traders hold short positions, while 45.5% hold long positions.
Despite the bearish sentiment and traders’ strong bets on short positions, long-term holders of AVAX remain confident in the altcoin.
Data from the spot inflow/outflow metric shows that exchanges have seen an outflow of AVAX worth $5.90 million in the past 24 hours. This indicates long-term sentiment from investors who continue to bet on AVAX despite its struggle to gain momentum.
Currently, AVAX is trading near $34.96 and has seen a price decline of 6.35% in the past 24 hours. The trading volume has increased by 30% during the same period, indicating increased participation from traders and investors compared to the previous day.
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