AVAX traders are playing hard on the short side, seeing $29
Avalanche's native AVAX has formed a bearish price action pattern on the daily time frame, so it is primed for the bearish trend. However, the current market sentiment is highly unpredictable, with some cryptocurrencies seeing price increases while others experience significant price drops.
AVAX Technical Analysis and Price Action
Meanwhile, AVAX has reached a critical support level at $35 and is struggling to hold this level. Since December 2024, the altcoin has reached this level several times, and has seen its price increase each time. However, the current market sentiment seems unfavorable for AVAX and suggests that it cannot hold this level.
Based on recent price action and historical progress, if AVAX fails to hold this level and the daily candle closes below $34.50, it may decline by 14% to reach the $29 level in the coming days.
In addition to this bearish price action, AVAX's Relative Strength Index (RSI) is currently near the oversold area, indicating a possible price reversal. However, this reversal seems difficult for the altcoin.
Traders view
Looking at market sentiment, traders are betting heavily on short positions, according to on-chain analytics firm Coinglass. At press time, AVAX's long/short ratio stands at 0.85, indicating bearish sentiment among traders. The data shows that currently 54.5% of top AVAX traders hold short positions while 45.5% hold long positions.
Despite bearish sentiment and traders' strong bets on short positions, long-term holders have shown strong interest and confidence in the altcoin.
Bullish view of long-term holders
The entry/exit gauge data from the site shows that $5.90 million worth of AVAX was withdrawn in the last 24 hours. This data reflects the long-term sentiment of investors who appear to be betting on AVAX, even as the price is struggling to gain momentum.
AVAX is currently trading at $34.96 and has seen a 6.35% drop in price over the past 24 hours. At the same time, the trading volume increased by 30 percent, which shows that the participation of traders and investors is growing compared to the previous day.
