AVAX, the original token of Avalanche, appears to be in a downtrend and is likely heading for a price drop as it has established a bearish price movement pattern on the daily chart. Nevertheless, the current market mood is quite erratic, with some cryptocurrencies experiencing price increases while others face significant declines.
AVAX Technical Assessment and Price Movement
In this context, AVAX has hit a vital support threshold at $35 and is finding it challenging to maintain this position. Since December 2024, the altcoin has touched this level on several occasions, each time followed by a price upswing. However, the prevailing market mood appears to be unfavorable for AVAX, suggesting that it may struggle to sustain this level.
Considering recent price developments and historical trends, if AVAX cannot hold this support and closes a daily candle beneath the $34.50 mark, it could plummet by 14% to hit the $29 level in the near future.
In addition to this bearish price movement, AVAX’s Relative Strength Index (RSI) is currently hovering near the oversold region, suggesting a possible price reversal. Nonetheless, this rebound appears to be challenging for the altcoin.
Traders’ Pessimistic Outlook
Examining the market atmosphere, traders are heavily inclined towards short positions, as indicated by the on-chain analysis firm Coinglass. At the time of reporting, the AVAX long/short ratio is at 0.85, reflecting a bearish outlook among traders. Additional data shows that 54.5% of leading AVAX traders are currently in short positions, while 45.5% are holding long positions.
Despite the negative sentiment and traders’ strong inclination towards shorts, long-term holders have exhibited substantial interest and faith in the altcoin.
Long-Term Holders Optimistic Perspective
Metrics from the spot inflow/outflow analysis reveal that exchanges have experienced an AVAX outflow amounting to $5.90 million over the last 24 hours. This suggests a long-term sentiment from investors who appear to be optimistic about AVAX, even as its price struggles to build momentum.
Currently, AVAX is trading around $34.96, reflecting a price reduction of 6.35% in the previous 24 hours. During this period, its trading volume rose by 30%, indicating increased activity from traders and investors compared to the day before.
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