Is the positive momentum of AVAX sufficient for the upcoming price rally?
Additionally, AVAX's derivatives activity has been increasing. A rise in trader anticipation was shown by the +21.64% increase in volume to $962.72M and the +2.66% increase in open interest to $576.53M.
According to Binance's data, 75.08% of traders were long, resulting in a 3.01 long/short ratio. Although such an aggressive skew increases risk, it also feeds positive sentiment. Long plays with excessive leverage may quickly unwind if AVAX doesn't break $25.
As a result, even when the data showed optimism, traders should exercise caution because high expectations without proof frequently result in volatility spikes and losses driven by liquidation.