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- AVAX’s Long/Short ratio stands at 1.40, reflecting strong bullish sentiment, with 58.3% of traders holding long positions for Avalanche.
- A recent buyback of 1.97 million AVAX tokens by the Avalanche Foundation could exert upward price pressure.
Avalanche’s native cryptocurrency AVAX has been recently in the limelight among developers amid key developments within the ecosystem and the broader market rally. Over the last week, the AVAX price has delivered strong 35% gains participating in the crypto market surge.
Market analysts believe that the Avalanche won’t stop on its upward journey anytime soon and could be eyeing for major potential gains ahead. Also, on the daily technical chart, AVAX presents strong buying action while suggesting a perfect buying opportunity. As of press time, the Avalanche price is trading 1% down at $31.49 with a market cap of $12,82 billion. Also, the daily trading volume has surged by 88% to more than $1.08 billion.
Avalanche (AVAX) has recently broken through a significant resistance level of $30, with its price now moving toward the next key resistance point. The asset’s surge has also seen it surpass the 200 Exponential Moving Average (EMA) on the daily chart, signaling a shift in market sentiment from a downtrend to an uptrend.
Also, as per the historical price momentum, if the Avalanche price closes above the daily candle of $32, there’s a strong possibility that it can soar by another 35% in the coming days rallying all the way to $42.5 ahead. Considering the current market conditions, achieving these levels shouldn’t come as much pain for AVAX investors. However, the market is likely to see some volatility considering key macro data release this week for US CPI, jobless claims, PPI, etc.
On-chain Indicators Are Bullish for Avalanche
Also, as per the data from analytics platform Coinglass, the Avalanche’s (AVAX) Long/Short ratio stood at 1.40, signaling strong bullish sentiment among traders. Furthermore, there’s also a 13.6% in the AVAX open interest in the past 24 hours, which shows greater trader participation following the recent breakout. Some market analysts also believe that AVAX can overtake SOL in the long term if its price crosses the $150 level, reported CNF.
Currently, 58.3% of top AVAX/USDT traders hold long positions, while 41.7% are short. This suggests that bulls and whales are in control, potentially setting the stage for a significant upside rally in the coming days.
Jason Yanowitz, Co-founder of Blockworks, believes that the Avalanche price could be on the verge of replicating its impressive 70X rally from 2021. According to Yanowitz, this phase began on November 5 following Donald Trump’s victory in the U.S. presidential election.
1/ There are 4 phases of a bull market.
Buckle up, we just entered the most fun phase.
Welcome to Stage 3 🧵
— Yano 🟪 (@JasonYanowitz) November 10, 2024
Yanowitz also highlighted that during this period, the private market is preparing to enter the crypto space. He noted that on November 6, many allocators realized they were significantly underexposed to crypto. Yanowitz forecasts that these firms are now reaching out to VCs and hedge funds for allocation, with major new funds expected to be announced soon.
Another catalyst for the Avalanche could be the recent buyback of 1.97 million AVAX tokens by the Avalanche Foundation, per the CNF report. This can provide an upward price pressure on the altcoin.