Over the past 24 hours, the value of the Avalanche (AVAX) token has risen by more than 4%, as reported by CoinMarketCap. This substantial increase positions AVAX as one of the top-performing cryptocurrencies currently, while the overall market struggles to stabilize.
AVAX Showing Strength in Key Support
One of the major drivers of this bullish sentiment is the recent price rebound from a critical support level at $19.56 on September 6th. This turnaround indicates a potential phase of accumulation for AVAX, attracting investors looking at its long-term prospects.
With a surge in long positions, sustained bullish momentum could help AVAX breach the $24 resistance level.
This level has previously posed as a significant resistance, and a sustained breakthrough could pave the way for further uptrends.
Source: TradingView
A closer look at technical indicators reveals more reasons for optimism around AVAX. The stochastic RSI indicator has entered the overbought territory, signaling a potential uptrend.
Bullish Signals in Metrics
The increased number of large transactions on the Avalanche network further supports the positive outlook. Market sentiments are at a crucial stage, with significant players entering the arena, hinting at potential big price movements.
Source: IntoTheBlock
On the flip side, social mentions about AVAX are increasing, with data from Santiment showing a steady rise in social volumes. This points towards a continuation of bullish sentiment in the accumulation phase.
Source: Santiment
However, a worrisome observation comes from the analysis of Hyblock’s net long data.
The net long position stands at 84%, indicating potential market fatigue. With AVAX bulls holding over 75% of open positions, the outcome could swing in either direction based on their holding strategies.
If whales continue to hold AVAX without initiating short positions, the bullish trend is likely to prevail.
Source: Hyblock
Overall, the metrics paint a positive outlook for the ongoing bullish momentum of Avalanche. If these trends persist, reaching the target level of $29.22 may be within reach.