Amid the ongoing bullish market sentiment, Avalanche (AVAX) has emerged as one of the standout performers, gaining an impressive 40% over recent weeks. Despite this notable surge, technical indicators and market sentiment suggest that AVAX is not done yet and could be poised for further gains in the near future.
According to recent technical analysis, AVAX has successfully broken through a critical resistance level at $30, signaling a potential continuation of the bullish trend. The cryptocurrency has recently surpassed the 200 Exponential Moving Average (EMA) on the daily chart, which is a key technical indicator that has shifted the sentiment from a previous downtrend to an uptrend.
This move above the 200 EMA is significant, as it reflects increased buying momentum and a growing bullish outlook for AVAX in the short to medium term. The breakout has been accompanied by strong price action, with AVAX nearing the next major resistance zone.
Looking at the current price action, AVAX is currently trading near $32.05, after gaining 9.6% over the past 24 hours. If the asset manages to close a daily candle above the $32 mark, the potential for a substantial upside increase becomes even more likely. Historical price momentum suggests that AVAX could soar by an additional 35%, potentially reaching the $42.5 level in the coming days.
Given the current bullish sentiment and market conditions, this level appears achievable, with little resistance in the immediate price range. The combination of a positive market environment and strong technical indicators suggests that AVAX has the potential to see further upside in the short-term.
The bullish sentiment for AVAX is not only reflected in its price action but also in the on-chain metrics. According to Coinglass, the Long/Short ratio for AVAX stands at 1.40, indicating a strong bullish bias among traders. This ratio suggests that more traders are holding long positions than short positions, which is a positive signal for future price appreciation.
Moreover, Open Interest for AVAX has surged by 13.6% over the past 24 hours, indicating growing trader participation and renewed confidence in the asset following its recent breakout. This uptick in Open Interest is an important indicator of continued interest and potential for further upward momentum.
As of the latest data, 58.3% of the top AVAX/USDT traders are holding long positions, while 41.7% are holding short positions. This further reinforces the dominance of bullish sentiment, with traders and market participants positioning themselves for an extended rally.
The growing interest in AVAX is also reflected in its trading volume, which has surged by 26% in the past 24 hours. Higher trading volume is often seen as a confirmation of strong market participation and investor confidence. In the case of AVAX, this increase in volume suggests that traders are actively engaging with the asset as its price continues to rise.
With the combination of strong technical indicators, positive on-chain data, and a market environment favoring continued growth, Avalanche (AVAX) is well-positioned for further gains. The asset has already broken through key resistance levels, and if it maintains momentum above the $32 level, there is a strong likelihood that AVAX could surge toward $42.5 in the coming days, marking a potential 35% upside from its current levels.
As always, however, traders and investors should remain cautious and aware of the inherent volatility in the cryptocurrency market. While the bullish trend for AVAX is compelling, it's essential to monitor price action and key levels closely for any signs of reversal. Nonetheless, for now, Avalanche is showing signs of significant upside potential, making it a noteworthy asset for those looking to capitalize on the ongoing bullish market sentiment.
November 2024, Cryptoniteuae