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$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.