AVAX, the native token of Avalanche, is showing bearish sentiment and may face a price decline. However, the current market sentiment is unpredictable, with some cryptocurrencies experiencing price surges, while others see significant declines.
AVAX Technical Analysis and Price Action
Amid current events, AVAX has reached a crucial support level of $35 and is struggling to hold it. Since December 2024, the altcoin has reached this level multiple times, each time witnessing a price surge. However, the current market sentiment appears unfavorable for AVAX, suggesting potential failure to hold this level. Based on recent price action and historical momentum, if AVAX fails to hold and closes a daily candle below $34.50, it could drop by 14% to reach the $29 level in the coming days.
Traders’ Bearish Outlook
Market sentiment shows that traders are heavily betting on short positions, as reported by on-chain analytics firm Coinglass. At the time of writing, the AVAX long/short ratio stands at 0.85, indicating bearish sentiment among traders. Data further reveals that 54.5% of top AVAX traders currently hold short positions, while 45.5% hold long positions.
Long-Term Holders' Perspective
Despite the bearish sentiment, long-term holders are showing interest in AVAX. Spot inflow/outflow data indicates an exchange outflow of AVAX worth $5.90 million in the past 24 hours, suggesting long-term investor sentiment betting on AVAX. Currently, AVAX is trading near $34.96, having declined by 6.35% over the past 24 hours. During the same period, its trading volume increased by 30%, indicating rising participation from traders and investors compared to the previous day.
AVAX finds itself under pressure from market realities and trader sentiment. Despite this, long-term investors see potential opportunities in the asset, hoping for future growth.
