Avalanche (AVAX) is expected to enter an uptrend after a retest of key support levels, according to the latest technical analysis. Market indicators are pointing to a possible upward movement in AVAX’s price, suggesting increasing investor confidence.
The latest report by COINOTAG states that 58% of AVAX holders are currently in profit, reinforcing the positive sentiment on the market. In this article, we will focus on the potential for the Avalanche (AVAX) price to rise and the positive sentiment shown by the current market data.
AVAX Tests Critical Support Level
Avalanche (AVAX) has attracted attention by bouncing off the critical support level at $31. At the time of writing, AVAX has risen to around $32.37, representing a 3.78% increase over the past 24 hours. This bounce suggests that the previous selling pressure has been effectively absorbed and that the price has the potential to break out of a strong resistance level after going through a consolidation period.
Recent price action has analysts suggesting that AVAX could continue to push higher price targets if it can stay above the $31 support, supporting expectations that increased buying interest and resilience from investors could lead to a strong rally.
Looking at on-chain data, AVAX appears to have strong upside potential. According to data from IntoTheBlock, around 58% of AVAX holders are in profit at the current price level. A high ratio indicates that market participants have strong investor sentiment and are more resilient to price fluctuations. This creates a solid foundation for AVAX’s next major price move.
Additionally, according to Santiment’s data, AVAX has been seeing a significant increase in social engagement. The increased social media volume since the beginning of the month indicates increased interest and enthusiasm for AVAX. High social mentions usually go hand in hand with price movements, and this could contribute to an upward movement in AVAX’s price.
Looking at Coinglass’s liquidation data, there is an upward trend for AVAX. There are many liquidation pools that have accumulated just above the $31 support level. This increases the possibility of the price moving upwards as liquidations are triggered on the buy side. Monitoring liquidation dynamics is important to understand market reactions and potential movements.
Overall, current market conditions and fundamentals suggest a bullish outlook for Avalanche (AVAX). If the $31 support level holds and social sentiment remains strong, AVAX has a high potential to continue its upward momentum. Investors should closely monitor these critical support levels to determine the direction of AVAX’s future price action.