AVAX Traders Strongly Bet on Short Side, Eyeing $29

AVAX, Avalanche’s native token, seems bearish and poised for a worth drop because it has fashioned a bearish worth motion sample on the every day timeframe. Nonetheless, the present market sentiment is kind of unpredictable, with some cryptocurrencies witnessing worth will increase whereas others expertise notable worth declines.

AVAX technical evaluation and worth motion

Amid this, AVAX has reached an important help degree at USD 35 and is struggling to carry this degree. Since December 2024, the altcoin has reached this degree a number of occasions, and every time witnessed a worth improve. Nonetheless, present market sentiment appears unfavorable for AVAX and signifies that it could fail to take care of this degree.

Primarily based on latest worth motion and historic momentum, if AVAX fails to carry this degree and shut a every day candle beneath the $34.50 degree, it may fall 14% to achieve the $29 degree within the coming days reaches.

Along with this bearish worth motion, AVAX’s Relative Energy Index (RSI) is presently close to oversold territory, indicating a possible worth reversal. Nonetheless, this reversal appears tough for the altcoin.

Bearish outlook for merchants

Taking a look at market sentiment, merchants are betting closely on quick positions, as evidenced by the on-chain analytics agency Mint glass. On the time of writing, the AVAX lengthy/quick ratio stands at 0.85, indicating bearish sentiment amongst merchants. Knowledge additionally reveals that 54.5% of the highest AVAX merchants presently maintain quick positions, whereas 45.5% maintain lengthy positions.

Regardless of the bearish sentiment and merchants’ robust bets on quick positions, long-term holders have proven robust curiosity and confidence within the altcoin.

Lengthy-term holders have a bullish outlook

Knowledge from the spot inflows/outflows metric reveals that the exchanges witnessed AVAX outflows price $5.90 million within the final 24 hours. This information factors to the long-term sentiment of traders who look like betting on AVAX regardless of the worth struggling to achieve momentum.

AVAX is presently buying and selling round $34.96 and has witnessed a decline of 6.35% within the final 24 hours. Throughout the identical interval, buying and selling quantity elevated by 30%, indicating growing participation from merchants and traders in comparison with the day earlier than.