- AVAX’s Open Interest (OI) shot up by 6.50%, like a squirrel on espresso, hinting at new positions being built
- On-chain metrics revealed exchanges have seen outflows of AVAX worth $3.54 million – someone’s hoarding like a dragon with gold
AVAX, the cheeky little token of Avalanche, seems to be pulling a U-turn after a rather embarrassing price slump. Like a toddler learning to walk, it’s wobbling back into the spotlight, catching the eyes of traders and investors with its bullish antics on the four-hour chart.
AVAX’s Price Shenanigans
At the time of writing, the altcoin was lounging near $34.60, having jumped by over 3.05% in the last 24 hours. But, oh dear, participation dropped by 15% – a clear sign that traders and investors are sitting on their hands, waiting for a proper signal or perhaps a miracle.
Traders’ and Investors’ Growing Obsession
Despite the drop in participation, traders have been eyeing AVAX like it’s the last slice of pizza. According to Coinglass, AVAX’s Open Interest (OI) climbed by 6.50% in the last 24 hours. This uptick suggests that new positions are being built, both long and short, like a game of crypto Jenga.
But it’s not just the day traders getting in on the action. Long-term holders and investors have started accumulating tokens too, like squirrels preparing for winter.
The on-chain metric for spot inflow/outflow showed that exchanges have seen outflows of AVAX worth $3.54 million in the last 24 hours. This could mean accumulation is happening, which might just push the price up further – or it could just be a bunch of people moving their tokens to a safer wallet. Who knows?
AVAX’s Technical Tango
All this bullish activity in AVAX has been driven by its strong price action, like a bull in a china shop.
According to AMBCrypto’s technical analysis, AVAX formed a bullish inverted head and shoulders pattern on the four-hour time frame. It seemed ready for a breakout, at press time. But let’s be honest, patterns in crypto are about as reliable as a weather forecast.
AVAX’s Crystal Ball
In the world of trading and investing, this pattern is considered a bullish signal, with the price usually surging after a successful breakout. But let’s not get too excited – this is crypto, after all.
Based on AVAX’s historical price momentum, if it breaches the pattern and closes a four-hour candle above the $35-level, it could initially rise by 8.50% to hit $38. If sentiment remains unchanged, it could further soar by 25% to touch $41.50 in the future. Or it could crash. Who knows? 🤷♂️
Despite the bullish outlook, AVAX was still trading below the 200 Exponential Moving Average (EMA) on the four-hour time frame, at press time. This indicated that it has remained on a downtrend. However, its Relative Strength Index (RSI) of 53 suggested that maybe, just maybe, it has the potential to continue its rally in the coming days. Or not. Crypto is a wild ride, after all.
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2025-01-31 14:19