- AVAX was at a crossroads, with a possible turnaround or further decline.
- Statistics indicate increased volatility.
Avalanche [AVAX] has been consolidating into an ascending triangle for the past three months. Since May 21, the price has gradually declined before retesting the $30 support level.
After the new test, the price has increased by an average of 5% over the past three days. Will AVAX build bullish momentum for a long-awaited price reversal, or will prices sink deeper to all-time lows?
At the time of writing, AVAX’s market cap is $12.66 billion, up 3.21% in the last 24 hours.
The 50- and 100-day exponential moving averages are $36.19 and $37.54, respectively.
With AVAX trading below these resistance levels, the indicator signals prevailing bearish sentiment. The stochastic RSI at 25.36 indicates an oversold zone that is vulnerable to price reversals.
Source: TradingView
What do statistics tell us?
AMBcrypto analyzed on-chain data from Santiment for additional AVAX insights.
Whale activity was found to show some changes in the percentage of total supply retained by whales. Development Activity fluctuated over the period, but changes were moderate.
Source: Santiment
Social volume metrics showed changing interest. After a significant spike on March 21, there has been a decline in social mentions.
However, recently renewed social interest could create bullish momentum for price appreciation.
Source: Santiment
AMBCrypto then analyzed the coin glass’s long/short ratio data, which indicated dominance in the short positions but has recently risen to shift the pendulum toward the long positions.
This suggests that AVAX price may be at a reversal point as the bulls start taking positions.
Momentum or decline?
The AVAX price is now at an important point. With the recent 5% gain after testing the $30 support level, bullish momentum may be imminent as confirmed by gradually increasing whale activity, social volume and fluctuating development trends.
Read Avalanche [AVAX] Price forecast 2024-25
If support holds and AVAX’s bullish momentum continues, the price could break out of the rising triangle resistance for a bull run to around $36.
However, if the support level does not hold, AVAX could fall further and possibly reach all-time lows.