Let's take a quick look at AVAX on on-chain metrics: which 2 levels are important?
1- On-Chain Support and Resistances
We can say that 51.59 and 46.85 are relatively larger and stronger supports in the short term.
On the other hand, the level that is difficult to exceed and is expected to be mixed with strong seller pressure is 54.88. A rapid upward movement can be expected with the next weekly closings above this level. However, if it is exceeded, the support levels can be tested respectively.
2- Is volatility an important metric?
My answer is very short and clear. Yes.
When we examine the last year's data, we see that the price also increased after the volatility increased. Especially in this calculation, we can see that Avax's price movement gained strong upward momentum after volatility rose above 100%.
✅ Result
Besides technical data, on-chain metrics can also help us understand price action.
Thank you for reading 🙏
