- Data from the derivatives market showed that shorts dominated the positions.
- A golden cross on the daily chart suggested an increase to $60 in the near term.
As a researcher with experience in cryptocurrency markets, I find the recent price action of Avalanche (AVAX) intriguing. The token’s price surge to $35.77, representing a 4.30% increase within the last 24 hours, has fueled speculation about potential further gains.
As a crypto investor, I’ve noticed an exciting development with Avalanche’s [AVAX] price reaching a new high of $35.77. This latest surge has rekindled the debate among us in the community about whether AVAX could potentially hit the $100 mark. In just the past 24 hours, we’ve experienced a robust growth of 4.30%.
However, it was still not close to the $61.90 ceiling that the cryptocurrency reached in March.
As an analyst, I took notice of several noteworthy signs that indicated the potential continuation of the token’s uptrend. Initially, I examined the Funding Rate mentioned by AMBCrypto.
The Funding Rate represents the expense incurred for maintaining an open position in the derivatives market. When the rate is positive, it signifies that long positions are making payments to short positions to keep their trades active.
Traders to lose, AVAX to gain
In this situation, a majority of bets lean towards being optimistic. Yet, the need for traders to top up their accounts due to losses from bearish positions indicates that many bearish wagers were made by traders who were shorting and paid out to those who went long.
A long position refers to an investor’s belief that the value of an asset will rise, leading them to buy the asset with the intention of selling it later at a higher price. Conversely, a short position involves an investor betting on a decline in the asset’s value. They borrow the asset and sell it at the current price, aiming to buy it back later at a lower price and return it to the lender while keeping the price difference as profit.
Here’s a suggestion for paraphrasing the given text in a more conversational and clear way:
As a researcher observing the market, I’ve noticed that those in established positions aren’t currently receiving any rewards for their investment. Moreover, the proposed price hike indicates strong buying interest from spot market participants. This assertive behavior could potentially signal a bullish trend for AVAX.
As a cryptocurrency market analyst, I have observed that if the current metric continues, there’s a possibility for the cryptocurrency price to break through the $40 mark in the near future based on the trend shown in the daily chart. Specifically, the Money Flow Index (MFI) reading has risen, indicating increased buying pressure.
The Money Flow Index (MFI) indicates whether money is moving into a cryptocurrency like AVAX or flowing out. If the MFI continues to rise and investors don’t withdraw their funds, the price trend may persist upward.
$100 is coming but not now
In simpler terms, AMBCrypto identified a support level at $32.77. This suggests that buyers have been successfully protecting this price point. Looking at the bigger picture, the 50-day moving average (represented by the blue line) now lies above the 200-day moving average (yellow line).
As a crypto investor, I’d interpret the crossover between AVAX‘s short-term and long-term moving averages as a positive sign, referred to as the “golden cross.” This bullish indicator implies that the price trend for AVAX is likely to continue upward in the mid to long-term. Consequently, I anticipate that the resistance at $60 might be surmounted during this period.
As a researcher studying the AVAX market, I can propose that AVAX bulls may attempt to drive up the price and reach the three-digit threshold. However, it is unlikely that this will occur within a few weeks; instead, it might take several months for this scenario to materialize.
Using Open Interest data from Coingeasus, we observed a modest uptick. This development suggests that traders are expanding their position holdings in anticipation of profiting from market movements.
Is your portfolio green? Check the AVAX Profit Calculator
As a researcher observing the market trends, if the On-Chain Indicator (OI) persists in its upward trajectory in tandem with the price movement, there’s a strong possibility that AVAX could reach a new weekly high before the current weekend concludes.
As an analyst, I would say: The $100 projection for the token is still a possibility, but it might not materialize until later in this year or even next year.
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2024-05-11 10:15