AVAX, the native token of Avalanche, may be setting up for a significant rally, even amid recent negative market sentiment. Current analysis suggests that AVAX could see a 12% increase, reaching the $28.50 mark if it maintains key support levels.
Key Technical Indicators Point to Growth
According to recent technical analysis, AVAX remains bullish and is approaching its critical $24.50 support level, which has historically triggered buying interest. The token also benefits from a rising trendline that has been active since August 2024, further strengthening its support.
Currently, AVAX trades slightly below the 200-day Exponential Moving Average (EMA) on the daily chart. However, with its Relative Strength Index (RSI) in the oversold area, an upward rally seems likely if the price can stay above the $24.50 mark.
On-Chain Metrics Support Bullish Outlook
Beyond technical indicators, on-chain metrics also reinforce a positive outlook for AVAX. Notably, Binance’s Long/Short ratio stands at 2.83, indicating that 73.91% of top traders on Binance are holding long positions, showcasing strong bullish sentiment.
Key Liquidation Levels to Watch
- Upside Target: $25.45 – A move to this level could trigger $875,300 in short liquidations.
- Downside Risk: $24.35 – A fall to this level could lead to $2.94 million in long liquidations.
With these factors in play, AVAX may see sustained bullish action in the coming days if it maintains crucial support at $24.50.
