- AVAX could soar by 12% to hit $28.50 if it holds itself above the $24.50-level
- On-chain metrics and technical analysis suggested that bulls have been dominating the asset
AVAX’s market sentiment and its price action have ordinarily been critical to the altcoin’s fortunes. Over the last two days, for instance, the wider sentiment across the crypto-market has been quite negative. However, it would seem that AVAX may be poised for a new rally again.
AVAX technical analysis and key levels
According to AMBCrypto’s technical analysis, AVAX remains quite bullish and could soar by 12% to reach the $28.50 level in the coming days.
In fact, its recent price action indicated that whenever the asset’s price approaches the support level of $24.50, it encounters some buying pressure and a price reversal.
Source: TradingView
Apart from this horizontal support level, AVAX, at press time, was supported by an upward-sloping trendline, which has been in place since the beginning of August 2024. Similar to the horizontal support level, whenever the asset’s price hits this trendline, it tends to record a notable upward rally.
At the time of writing, AVAX seemed to be trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating an uptrend. Meanwhile, its Relative Strength Index (RSI) suggested a possible upward rally, as it was in the oversold area.
AVAX’s bullish thesis will hold only if it stays above the $24.50-level. Otherwise, it will fail.
Bullish on-chain metrics
In addition to this positive technical analysis, on-chain metrics such as key liquidation levels and the Long/Short ratio further supported this bullish outlook. According to the on-chain analytics firm CoinGlass, for instance, Binance’s AVAX Long/Short ratio had a value of 2.83 at press time.
Source: Coinglass
This finding alluded to a strong bullish sentiment among traders. Additionally, 73.91% of top traders on Binance seemed to hold long positions, while 26.09% of them held short positions.
Major liquidation levels
Right now, the major liquidation levels are at $24.35 on the lower side and $25.45 on the upper side, with traders over-leveraged at these levels, according to Coinglass.
If the sentiment remains bullish and the price rises to the $25.45-level, nearly $875,300 worth of short positions will be liquidated. Conversely, if the sentiment shifts and the price falls to the $24.35-level, approximately $2.94 million worth of long positions will be liquidated.
Combining these on-chain metrics with technical analysis suggested that AVAX bulls are currently dominating the asset and may support an upcoming rally.
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