Home Altcoins News AVAX Traders Bet on Decline, Eyeing $29 Amid Bearish Sentiment

AVAX Traders Bet on Decline, Eyeing $29 Amid Bearish Sentiment

AVAX Price

Avalanche’s native token, AVAX, has been experiencing significant pressure, with bearish sentiment growing among traders. The altcoin has formed a negative price action pattern on the daily chart, and many are now predicting a price decline, especially as it struggles to maintain support at $35.

Despite some cryptocurrencies seeing price surges, AVAX seems to be bucking the trend. The current market conditions, coupled with growing bearish signals, suggest that the token could face further declines in the near future. Traders are increasingly betting against AVAX, with a notable shift toward short positions.

AVAX Technical Analysis: Crucial Support at $35

AVAX’s price action has been struggling to hold a critical support level at $35. This level has acted as a significant price point since December 2024, with the altcoin bouncing back each time it tested this zone. However, the current market sentiment seems less favorable, indicating that the support may not hold much longer.

If AVAX fails to maintain this support and closes below $34.50 on the daily chart, it could see a substantial drop. Based on recent price patterns, analysts predict that AVAX could decline by as much as 14%, potentially hitting the $29 mark in the coming days.

Bearish Momentum: AVAX’s RSI and Market Sentiment

Along with the bearish price action, the Relative Strength Index (RSI) for AVAX is currently hovering near the oversold zone. While this typically signals that a reversal may be near, many traders remain unconvinced that AVAX can recover anytime soon. With the broader market sentiment remaining unpredictable, any potential price reversal for AVAX appears challenging in the current environment.

On-chain data supports this bearish outlook. According to Coinglass, a leading on-chain analytics firm, the AVAX long/short ratio stands at 0.85, showing a stronger preference for short positions. This indicates that a majority of traders are betting on further price declines. In fact, 54.5% of top AVAX traders have opened short positions, while only 45.5% are holding long positions.

Long-Term Holders Maintain Confidence

Despite the overall bearish sentiment, long-term holders of AVAX appear to be staying optimistic. Data from the spot inflow/outflow metric shows that exchanges have seen an outflow of $5.90 million worth of AVAX in the past 24 hours. This suggests that long-term investors are still confident in the token’s potential, continuing to hold despite recent price struggles.

Furthermore, AVAX’s trading volume has been increasing, rising by 30% in the last 24 hours. This spike in trading activity indicates that there is still significant interest in the altcoin, despite its price decline.

AVAX Price Decline and Market Outlook

Currently trading at $34.96, AVAX has seen a price drop of 6.35% over the past 24 hours. This decline highlights the ongoing bearish pressure on the token. However, despite the negative sentiment in the short term, the increase in trading volume and long-term investment interest could provide some support if the price starts to stabilize.

The key factor moving forward will be whether AVAX can hold above its crucial support level of $35. A failure to do so could pave the way for a further decline, potentially reaching the $29 price range. Traders will need to monitor market conditions and key technical indicators closely as the situation evolves.

Conclusion: AVAX Faces Challenges Ahead

While AVAX traders remain overwhelmingly bearish in the short term, with a strong emphasis on short positions, long-term holders continue to show faith in the altcoin’s future potential. The battle between these opposing sentiments will likely shape the price action for the token in the coming days. If AVAX fails to hold its support at $35, a drop to $29 could become a reality. However, the increasing trading volume and long-term outflows from exchanges suggest that some investors are still betting on a rebound down the road.

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Pankaj K

Pankaj is a skilled engineer with a passion for cryptocurrencies and blockchain technology. With over five years of experience in digital marketing, Pankaj is also an avid investor and trader in the crypto sphere. As a devoted fan of the Klever ecosystem, he strongly advocates for its innovative solutions and user-friendly wallet, while continuing to appreciate the Cardano project. Like my work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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