AVAX Faces Significant Risk of Sharp Decline: Is $29 the Stopping Point?
This analysis shows the sensitive situation of AVAX (Avalanche) as it faces significant selling pressure and pessimism from traders. Some key points in the article include:
1. Key support level: AVAX is currently struggling to maintain the $35 support level. If it fails to hold, the price could drop to $29, corresponding to a 14% decrease.
2. Technical indicators: RSI nearing the oversold region indicates a potential price reversal, but with the current sentiment, such a reversal is unlikely in the short term.
3. Market sentiment:
• Short-term traders: Betting on short positions, with a long/short ratio of 0.85 and 54.5% of top traders holding short positions. This indicates overwhelming bearish sentiment.
• Long-term investors: More optimistic sentiment, reflected through an outflow of $5.9 million from exchanges, implying that long-term investors still believe in the potential of AVAX.
4. Increased trading volume: A 30% increase in trading volume over the past 24 hours indicates significant interest from the market, even as prices decline.
Overall, AVAX is at a crucial crossroads. If it cannot hold the current support level, the bearish trend could be reinforced. However, the interest from long-term investors may provide support in the medium or long term. Investors need to closely monitor technical thresholds and market sentiment movements in the upcoming period.