In a surprising turn of events, Avalanche (AVAX) has emerged as a top performer, recording the highest price gains among the top 20 cryptocurrencies by market capitalization. While the broader market, including heavyweights like Bitcoin and Ethereum, showed minor upticks, AVAX bulls pushed the token’s price up by more than 6% in the last 24 hours.
At the time of writing, AVAX was trading at $23.03 with a market capitalization exceeding $9.33 billion, securing its spot as the 12th largest cryptocurrency.
AVAX Defies Bearish Sentiment
Despite its impressive price surge, the market’s response to AVAX’s performance has been muted. Data from AMBCrypto, drawing on Santiment’s analytics, revealed that the token’s weighted sentiment actually dropped, signaling a rise in bearish sentiment surrounding the asset. This bearish outlook contrasts with the bullish price action, suggesting that some investors remain cautious about the token’s long-term prospects.
However, not all indicators reflect a pessimistic outlook. Social volume for AVAX remains high, a metric that tracks the frequency of mentions and discussions about the token across social platforms, signaling that Avalanche is still capturing the attention of the crypto community. Additionally, long-term investor confidence in AVAX appears to be strengthening.
Long-Term Holders Signal Confidence
According to data from IntoTheBlock, long-term holders—addresses holding AVAX for over a year—have now surpassed short-term holders, or cruisers, who have held the token for one to twelve months. This shift indicates growing optimism among long-term investors, who expect AVAX’s price to continue its upward trajectory.
The increasing confidence among long-term holders is a bullish sign, suggesting that they anticipate further price gains in the weeks or months ahead. But is this optimism justified? A look at Avalanche’s on-chain metrics offers some clues.
Recent on-chain data analyzed by AMBCrypto shows that open interest in AVAX, a key indicator of market sentiment, has been rising alongside the token’s price. This suggests that the ongoing bull rally may have more room to run. Furthermore, selling pressure on AVAX has been steadily decreasing, which bodes well for its short-term price action.
Notably, netflows for AVAX on DeFiLlama revealed a drop to -$2.47 million on September 7th. A negative netflow typically indicates that more AVAX is being purchased than sold, a signal often associated with bullish market behavior.
Despite the positive signs, whale activity—typically a key driver of price movements—has been relatively subdued. Data from Hyblock Capital shows that AVAX’s whale vs. retail delta has dropped from over 60 to 44, meaning that retail investors are currently more active in the market than whales.
Technical Indicators Point to Further Gains
From a technical perspective, Avalanche’s Relative Strength Index (RSI) has registered a rise, indicating that the bulls may be able to sustain the current upward momentum. If this momentum holds, AVAX could soon target $27 as its next price resistance level, before setting its sights on $32.
However, if a bearish reversal occurs, AVAX could face a decline, with the $19.4 level acting as a potential support zone.
Also Read: AVAX Teeters On $22.84 Support – Analysts Predict A 105% Surge Amid Bullish Signals
With strong on-chain metrics, rising long-term holder confidence, and positive technical indicators, AVAX seems well-positioned to continue its bullish run. While market sentiment remains divided, especially with whale activity tapering off, the token’s performance in recent days suggests that further gains are possible if broader market conditions improve.
For now, Avalanche’s trajectory remains one to watch as it battles to maintain its upward momentum amidst a largely stagnant crypto market.
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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