AVAX Traders Strongly Bet on Short Side, Eyeing $29
AVAX, the native token of Avalanche, seems bearish and is poised for a price decline as it has formed a bearish price action pattern on the daily time frame. However, the current market sentiment is quite unpredictable, with some cryptocurrencies witnessing price surges while others experience notable price declines.
AVAX Technical Analysis and Price Action
Amid this, AVAX has reached a crucial support level of $35 and is struggling to hold this level. Since December 2024, the altcoin has reached this level multiple times, and each time it witnessed a price surge. However, the current market sentiment seems unfavorable for AVAX and indicates that it could fail to hold this level.
Based on recent price action and historical momentum, if AVAX fails to hold this level and closes a daily candle below the $34.50 level, it could drop by 14% to reach the $29 level in the coming days.
Besides this bearish price action, AVAX’s Relative Strength Index (RSI) currently lies near the oversold area, indicating a potential price reversal. However, this reversal seems difficult for the altcoin.
Traders’ Bearish Outlook
Looking at the market sentiment, traders strongly bet on short positions, as revealed by the on-chain analytics firm Coinglass. At press time, the AVAX long/short ratio stands at 0.85, indicating bearish sentiment among traders. Data further reveals that 54.5% of top AVAX traders currently hold short positions, while 45.5% hold long positions.
Despite the bearish sentiment and traders’ strong bets on short positions, long-term holders have shown strong interest and confidence in the altcoin.
Long-Term Holders Bullish Outlook
Data from the spot inflow/outflow metric revealed that exchanges have witnessed an outflow of AVAX worth $5.90 million in the past 24 hours. This data indicates long-term sentiment from investors who seem to be betting on AVAX, despite its price struggling to gain momentum.
AVAX is currently trading near $34.96 and has witnessed a price decline of 6.35% in the past 24 hours. During the same period, its trading volume increased by 30%, indicating rising participation from traders and investors compared to the previous day.
