AVAX Traders Strongly Bet on Short Side, Eyeing $29
Avalanche’s native token AVAX appears to be bearish and poised for a price decline as it formed a bearish price action pattern on the daily time frame. However, the current market sentiment is quite unpredictable, with some cryptocurrencies surging in price and others plummeting.
AVAX Technical Analysis and Price Action
During this time, AVAX has reached the key support level of $35 and is struggling to maintain that level. Altcoins have reached this level multiple times since December 2024 and have witnessed price surges each time. However, current market sentiment appears to be negative for AVAX and suggests it may not be able to maintain these levels.
Based on recent price action and historical momentum, if AVAX fails to hold this level and close below $34.50, it could drop 14% to $29 levels in the coming days.
In addition to this bearish price action, AVAX’s relative strength index (RSI) is currently sitting near oversold territory, indicating a potential price reversal. However, this reversal appears to be difficult for altcoins.
Traders bearish outlook
The on-chain analytics firm revealed that judging from market sentiment, traders are betting strongly on short positions coin glass. At press time, the AVAX long-short ratio was 0.85, indicating bearish sentiment among traders. The data further shows that 54.5% of top AVAX traders currently hold short positions, while 45.5% hold long positions.
Despite bearish sentiment and traders betting heavily on short positions, long-term holders have shown strong interest and confidence in the altcoin.
Long-term holders are bullish on prospects
Spot inflow/outflow indicator data shows that the exchange witnessed $5.9 million worth of AVAX outflows in the past 24 hours. The data is indicative of long-term sentiment among investors, who appear to be betting on AVAX even as its price struggles to rise.
AVAX is currently trading near $34.96, with the price down 6.35% in the past 24 hours. Trading volume increased by 30% during the same period, indicating increased participation from traders and investors compared to the previous trading day.
