Avalanche (AVAX) has been on a strong upward trajectory, already surging 40% in recent weeks, and analysts believe the cryptocurrency may have room for even more growth. The digital asset is showing promising signs of continued bullish momentum, with technical indicators suggesting that AVAX could rally by as much as 35% in the near future.

Bullish Sentiment Drives AVAX Price Action

One of the key indicators of AVAX’s bullish outlook is the asset’s Long/Short ratio, which currently stands at 1.40. This ratio reflects a significant imbalance in favor of long positions, suggesting that the market sentiment is overwhelmingly bullish. At the time of writing, 58.3% of top AVAX traders were holding long positions, while 41.7% were in short positions. This indicates that more traders are betting on a price increase, fueling optimism for further upside.

In addition to this, AVAX’s Open Interest has risen by 13.6% in the past 24 hours, signaling increased participation from traders. A higher Open Interest typically indicates growing market confidence, as more investors and traders are willing to take positions in the asset. The rising volume and bullish sentiment have combined to push AVAX’s price higher, and experts predict that the rally is likely to continue.

Technical Analysis Points to Further Gains

Technical analysis of AVAX’s price chart shows a strong breakout above the $30 resistance level. This move has pushed the asset past key technical levels, including the 200 Exponential Moving Average (EMA), a widely watched indicator that has shifted the market sentiment from a downtrend to an uptrend. The price surge has resulted in a shift in momentum, signaling a favorable buying opportunity for traders looking to capitalize on the next phase of the rally.

According to AMBCrypto’s analysis, if AVAX closes a daily candle above the $32 level, the cryptocurrency could easily rise by another 35%, potentially reaching the next resistance at around $42.50. Given the current market conditions and the overall bullish sentiment, this target is within reach, and a continued rally appears likely.

Why AVAX Could Surge Further

Several factors suggest that AVAX is positioned for more growth in the coming days. First, the cryptocurrency has demonstrated strong performance in a generally bullish market, with a significant price increase already under its belt. The combination of solid technical indicators and positive market sentiment points to a high likelihood of further price appreciation.

Additionally, the 58.3% of traders holding long positions suggests that the bulls, including whales, are in control of the market. This dominance by long positions further supports the expectation of a sustained rally, as the demand for AVAX continues to rise.

Conclusion

Avalanche (AVAX) is showing impressive technical strength and strong bullish sentiment, positioning it for a potential 35% rally in the coming days. The recent breakout above critical resistance levels, combined with increasing Open Interest and a predominantly long market sentiment, suggests that AVAX is primed for more upside. Investors and traders alike will be keeping a close eye on the $32 level, as a solid close above this threshold could pave the way for even higher prices.

With the current market conditions favoring further gains, AVAX could soon see itself testing new highs, making it an asset to watch closely in the days ahead.