Avax, the native symbol of Avalanche, looks bearish and is preparing for a price decline as it has formed a bearish action pattern on the daily time frame. However, the current market sentiment is quite unpredictable, with some cryptocurrencies seeing price increases while others are experiencing price declines.
AVAX Technical Analysis and Price Action
Amid this, Avax has reached a crucial support level of $35 and is struggling to hold this level. Since December 2024, AltCoin has reached this level several times, and each time has seen a price increase. However, the current market sentiment seems unfavorable for Avax and suggests that it may fail to hold this level.
Based on the recent price action and historical momentum, if Avax fails to hold this level and closes a daily candle below the $34.50 level, it could decline by 14% to reach the $29 level in the coming days.
Along with this bearish price action, Avax’s Relative Strength Index (RSI) is currently near a sell zone, indicating a potential price reversal. However, this reversal appears difficult for Altcoin.
The best forecasts for traders
Given the market sentiment, traders are betting heavily on short positions, the on-chain analytics firm revealed coinglass. At press time, the Avax Long/Short ratio is 0.85, indicating bearish sentiment among traders. The data further reveals that 54.5% of Avax’s top traders currently hold short positions, while 45.5% hold long positions.
Despite the bearish sentiment and strong bets of traders in short positions, long-term holders have shown strong interest and confidence in Altcoin.
My future is bullish in the long term
Data from Spot Inflow/Outflow Barometer revealed that exchanges saw Avax outflow worth $5.90 million in the last 24 hours. This data indicates a long-term sentiment from investors who appear to be betting on Avax, even though its price is struggling to gain momentum.
Avax is currently trading near $34.96 and has seen a price decline of 6.35% over the past 24 hours. During the same period, trading volume increased by 30%, indicating higher participation from traders and investors compared to the previous day.
