- Any further losses can confirm an up-channel breakout on the daily chart.
- The derivatives data indicated a cautious but slightly bullish sentiment among top traders, which could stabilize the current uptrend.
Avalanche [AVAX] continued its uptrend within an ascending channel over the past few weeks.
After breaking above the 50-day EMA, the bulls secured a steady uptrend and propelled the price toward the 200-day EMA.
However, the recent price action suggested the potential for a pullback as it approached key resistance levels.
AVAX traded at $28.29 at press time, down by around 2.51% in the last 24 hours. Despite this dip, the bullish momentum remained intact due to a northbound 20-day EMA crossing above the 50-day EMA.
Can AVAX bulls provoke a long-term uptrend?
Source: TradingView, AVAX/USDT
The 20-day EMA at $26.99 and the 50-day EMA at $25.62 showed an upward trajectory, suggesting a continued bullish trend in the near term.
However, the 200-day EMA at $28.65 was currently acting as a strong resistance level. If the price fails to break above this level, a short-term pullback may occur.
The MACD line affirmed a bullish edge because it was above the signal line at the time of writing.
The histogram was also in positive territory, but the recent red candles on the daily chart may lead to a temporary bearish crossover if the sellers continue to exert pressure.
If AVAX can close above the $28.65 level (200-day EMA), the bulls may attempt to push the price toward the $31.3 resistance. A breakout above this level could set the stage for further gains toward $34-$36 in the coming days.
On the downside, if AVAX fails to hold above the 200-day EMA, the price may revisit the $26.99 support level, with the next major support at $25.62 (50-day EMA).
A sustained decline below this range could open doors to further downside toward $22-$20.
Derivatives data revealed this
Source: Coinglass
AVAX’s volume surged by 36.82% over the past day. This increase in volume suggested increasing interest among traders, potentially signaling a strong upcoming move in the price.
But Open Interest declined by 3.38%, indicating that some traders have closed their positions. This divergence between volume and open interest could imply uncertainty in the market direction.
Read Avalanche’s [AVAX] Price Prediction 2024–2025
The overall long/short ratio stood at 0.9433 to slightly favor the sellers. However, the long/short ratio on Binance for top traders stood at 2.2206 to indicate that major market buyers were betting on further price increases.
It’s worth noting that the broader market sentiment and Bitcoin’s movement will also play a vital role in determining AVAX’s near-term trajectory.
