AVAX’s market sentiment and price movement have always played a crucial role in determining the fate of the altcoin. Despite the recent negative sentiment prevailing in the broader crypto market, there are signs indicating a potential new rally for AVAX.
AVAX Price Analysis and Critical Levels
As per the technical analysis by CryptoCrypto, AVAX is currently exhibiting a bullish trend and could potentially rise by 12% to hit the $28.50 mark in the upcoming days.
Interestingly, recent price actions have shown that whenever AVAX’s price nears the $24.50 support level, it tends to attract buying interest and witnesses a reversal in price direction.
Aside from the horizontal support at $24.50, AVAX is currently supported by an upward-trending line that has been intact since the start of August 2024. Similar to the horizontal support, the asset’s price often experiences a significant upward movement upon touching this trendline.
Presently, AVAX appears to be trading below the 200 Exponential Moving Average (EMA) on the daily chart, indicating an upward trend. Moreover, the Relative Strength Index (RSI) suggests a potential upward momentum, as it is located in the oversold region.
For the bullish scenario to hold, AVAX must maintain levels above $24.50; otherwise, it could invalidate the bullish outlook.
Bullish On-Chain Indicators
Alongside the positive technical analysis, on-chain metrics, such as key liquidation thresholds and the Long/Short ratio, further reinforce the optimistic sentiment. According to CoinGlass analytics firm, Binance’s AVAX Long/Short ratio stood at 2.83 at the time of reporting, reflecting a strong bullish stance among traders.
Furthermore, data revealed that 73.91% of top traders on Binance held long positions, while 26.09% maintained short positions, indicating a prevailing bullish sentiment.
Key Liquidation Levels
Currently, the primary liquidation levels are identified at $24.35 on the downside and $25.45 on the upside, with traders being heavily leveraged at these points, as per Coinglass analysis.
In a bullish scenario where the price climbs to $25.45, short positions totaling approximately $875,300 could face liquidation. Conversely, if sentiment turns bearish and the price drops to $24.35, long positions worth around $2.94 million might be liquidated.
By combining these on-chain metrics with the technical analysis, it suggests that AVAX bulls are exhibiting dominance over the asset and could potentially drive an imminent rally.