Today, the attention is back on Avalanche (AVAX) as recent data and technical assessment have suggested a possible uptrend. Lately, AVAX has displayed resilience by bouncing back from its crucial support level at $31. Currently, the altcoin is priced at $32.37, showing a 3.78% increase within 24 hours.
It is worth noting that this price movement follows a period of sideways trading and consolidation. The consolidation phase signifies that the past selling pressure has been absorbed by the market, hinting at a potential breakout towards higher levels.
The recent uptick indicates a growing confidence among traders towards achieving higher price objectives.
Indicators Supporting the Optimistic Scenario
An analysis of AVAX’s on-chain metrics by CryptoCrypto has disclosed more positive insights into the recent movements of the altcoin. IntoTheBlock data reveals that approximately 58% of AVAX holders are currently in profit at the current price point. This notable percentage reflects a strong investor sentiment at the current price level.
This profit level indicates a stable foundation for the asset, potentially allowing for further upside movements.
Moreover, data from Santiment’s social metrics highlights a significant increase in social volumes for AVAX since the beginning of the month.
This rise in social interactions contributes to the favorable sentiments surrounding AVAX’s market status.
According to Coinglass’s liquidation statistics, AVAX appears to exhibit a positive bias, with clusters of liquidation thresholds positioned above its recently retested support level.
These levels play a critical role and could activate buy-side liquidations, further propelling the upward trend.
What Lies Ahead for AVAX?
In conclusion, the current market situation and metrics of AVAX suggest a bullish outlook.
As long as the $31 support area remains intact and social sentiments remain positive, Avalanche could sustain its upward trajectory in the near future.