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- AVAX shows bullish sentiment, with 74% of traders holding long positions.
- Technical indicators suggest a potential 12% rally to $28.50 in the near future.
- Key support levels are at $24.50; drops below may jeopardize bullish momentum.
Avalanche (AVAX) is drawing significant attention as sentiment shifts towards optimism. After a rough couple of days, many analysts predict a potential breakout. Additionally, technical indicators and on-chain metrics hint at a possible 12% rally, pushing AVAX to the $28.50 mark.
AVAX shows bullish signs with potential for a 12% rally! Can it hold support at $24.50? Here’s what the indicators say.@avax #AVAX #Avalanche $AVAX #Crypto #Altcoins https://t.co/VHbrPETiG2
— Crypto_Feed.News (@crypto_feednews) November 2, 2024
Technical Analysis: Key Levels in Focus
AVAX has shown resilience at the $24.50 support level, where buying pressure frequently appears. This trend signals that traders view this price point as an ideal entry. Additionally, a bullish trendline has been in place since August 2024, reinforcing this support. At press time, AVAX trades below the 200 Exponential Moving Average (EMA) on the daily chart, hinting at an impending uptrend.
Moreover, the Relative Strength Index suggests momentum is building. Trading in oversold territory means buyers may soon flood the market. To maintain bullish momentum, AVAX must stay above $24.50. Dropping below this level could signal trouble and jeopardize the positive outlook.
On-Chain Metrics: A Strong Bullish Sentiment
Supporting this optimistic technical analysis, on-chain metrics reveal more insights. According to CoinGlass, the Long/Short ratio for AVAX on Binance stands at 2.83. This figure indicates strong bullish sentiment among traders. Currently, 73.91% of top traders hold long positions, while only 26.09% take short positions.
Liquidation levels provide another layer of insight. Major liquidation points rest at $24.35 and $25.45. If AVAX rises to $25.45, nearly $875,300 in short positions could liquidate. Conversely, a drop to $24.35 would lead to around $2.94 million in long positions getting wiped out.
The combination of technical signals and positive on-chain metrics paints a robust bullish picture for AVAX. With a significant number of traders holding long positions, the stage appears set for an exciting rally. Will AVAX reach $28.50? Only time will tell.