The native token of Avalanche, known as AVAX, seems to be experiencing a turnaround following a noticeable price drop in recent days. Much like other leading cryptocurrencies, AVAX is attracting attention from traders and investors due to its bullish trend on the four-hour chart.
Market Momentum for AVAX
As of the latest data, this altcoin was trading close to $34.60, marking a significant increase of more than 3.05% in the past 24 hours. However, during the same timeframe, trading activity appeared to have decreased by 15%, indicating that traders and investors might be awaiting confirmation or a shift in sentiment.
Increased Interest from Traders and Investors
Despite the drop in trading activity, traders have displayed a notable interest in AVAX, as highlighted by the findings of the on-chain analytics company Coinglass. Recent data shows that AVAX’s Open Interest (OI) has risen by 6.50% over the past 24 hours. This uptick in OI suggests the emergence of new positions on both the long and short sides.
Notably, the interest in altcoins extends beyond short-term traders, with investors and long-term holders starting to accumulate tokens as well.
According to the spot inflow/outflow on-chain metric, exchanges have observed outflows of AVAX valued at $3.54 million in the previous 24 hours. This outflow could indicate potential accumulation, leading to increased buying pressure and further upward movements.
Technical Analysis and Price Action for AVAX
The surge in AVAX has been primarily driven by its robust price action.
As per CryptoCrypto’s technical analysis, AVAX has formed a bullish inverted head and shoulders pattern on the four-hour chart, hinting at a possible breakout soon.
Price Prediction for AVAX
In the realm of trading and investing, experts typically view this pattern as a bullish signal, with prices often seeing significant increases post a successful breakout.
Basing predictions on the historical price movements of the altcoin, a breach of the pattern with a four-hour candle closing above the $35 mark could prompt an initial surge of 8.50% to reach $38. Should the sentiment hold, there is potential for a further rise of 25% to touch $41.50 in the foreseeable future.
Despite the optimistic outlook, AVAX was found to be trading below the 200 Exponential Moving Average (EMA) on the four-hour chart at the time of reporting, indicating a prevailing downtrend. Nonetheless, with a Relative Strength Index (RSI) of 53, there is a possibility that the rally may persist in the days ahead.