Avalanche’s native token, AVAX, has seen a remarkable surge, gaining over 4% in the last 24 hours, according to CoinMarketCap data. As the broader cryptocurrency market struggles to maintain stability, AVAX has emerged as one of the top gainers, catching the attention of traders and analysts alike. The surge comes after the token reversed from a crucial support level, igniting bullish sentiment among investors.
AVAX’s Key Support Levels Hold Strong
On September 6th, AVAX bounced back from a critical support level of $19.56, a move that analysts believe signals the beginning of a new accumulation phase. This price reversal has drawn significant interest from investors who are positioning themselves for long-term gains. The growing interest in long positions suggests confidence in AVAX’s potential for sustained upward momentum.
If this bullish trend persists, AVAX could break through the $24 resistance level, a price point that has proven difficult to surpass in the past. A decisive move above this resistance could pave the way for further gains, possibly driving the token toward new highs in the coming weeks.
Technical Indicators Signal Bullish Momentum
A deeper analysis of technical indicators points to more reasons for optimism around AVAX. The stochastic RSI, a popular momentum indicator, has entered the overbought zone, signaling a potential continuation of the upward trend. This suggests that buying pressure remains strong, with the possibility of further price appreciation.
Additionally, large transactions on the Avalanche network have increased, a key indicator of institutional activity. This rise in large transactions hints that big players are entering the market, adding fuel to the bullish sentiment.
Social Metrics Confirm Growing Interest
Beyond technicals, AVAX’s social metrics also support the notion of a bullish rally. Data from Santiment shows a steady increase in social mentions, with social volume on the rise. This growing chatter around AVAX indicates increasing market interest, often a precursor to price surges as investors pay more attention to the asset.
However, not all metrics paint an entirely rosy picture. Data from Hyblock Analytics reveals that net long positions for AVAX stand at a staggering 84%. While this shows strong bullish sentiment, it also signals potential market exhaustion. Over 75% of open positions are held by bulls, which could lead to increased volatility if profit-taking ensues.
The future trajectory of AVAX largely depends on the actions of these major holders. If institutional players and whales continue to hold their positions without shorting, the bullish run could persist. However, a wave of sell-offs could trigger a correction, particularly if AVAX fails to break above the $24 resistance.
Also Read: AVAX Surges 6% In 24 Hours, Outperforming Bitcoin And Ethereum – Is $27 Next?
For now, all signs point to a potential continuation of the current rally. If AVAX can maintain its momentum and break above key resistance levels, the next target could be $29.22, a price point that may come into play if bullish sentiment remains strong.
As AVAX continues its impressive upward trend, breaking critical support and resistance levels will be key to sustaining its rally. While technical indicators and social metrics suggest a bullish future, investors should remain cautious of potential market exhaustion. All eyes are on AVAX as it approaches a critical price juncture, with the potential for significant gains if the current trend holds.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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