📊 Is #AVAX set for a 12% rally? 74% of traders think so because…
AVAX’s market sentiment and its price action have ordinarily been critical to the altcoin’s fortunes. Over the last two days, for instance, the wider sentiment across the crypto-market has been quite negative. However, it would seem that AVAX may be poised for a new rally again.
🔸 AVAX technical analysis and key levels
According to AMBCrypto’s technical analysis, AVAX remains quite bullish and could soar by 12% to reach the $28.50 level in the coming days.
In fact, its recent price action indicated that whenever the asset’s price approaches the support level of $24.50, it encounters some buying pressure and a price reversal.
Apart from this horizontal support level, AVAX, at press time, was supported by an upward-sloping trendline, which has been in place since the beginning of August 2024. Similar to the horizontal support level, whenever the asset’s price hits this trendline, it tends to record a notable upward rally.
At the time of writing, AVAX seemed to be trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating an uptrend. Meanwhile, its Relative Strength Index (RSI) suggested a possible upward rally, as it was in the oversold area.
AVAX’s bullish thesis will hold only if it stays above the $24.50-level. Otherwise, it will fail.
🔸 Bullish on-chain metrics
In addition to this positive technical analysis, on-chain metrics such as key liquidation levels and the Long/Short ratio further supported this bullish outlook. According to the on-chain analytics firm CoinGlass, for instance, Binance’s AVAX Long/Short ratio had a value of 2.83 at press time.
This finding alluded to a strong bullish sentiment among traders. Additionally, 73.91% of top traders on Binance seemed to hold long positions, while 26.09% of them held short positions.
