- AVAX gains 5% but suffers from bearish signals on the chain and a split in market sentiment.
- A significant drop in derivatives trading volume suggests reduced market interest or potential consolidation.
Avalanche [AVAX] Recently, the market has shown a bullish trend. AVAX has seen its price rise by over 5% within the last 24 hours, leading many to speculate that it is about to experience a huge surge.
Try to discover the truth.
Mixed feelings from On-chain Data
AVAX has a market capitalization of around $10.54 Billion. The stock is currently priced at $27.06, with an increase of 1% in the past 24 hours.
A 49% profit split is fairly balanced among those who are making money. AVAX recorded $461 million in transactions worth more than $10K.
IntoTheBlock’s data shows that sentiment and trading signals tend to be mostly negative.
The sentiment of the market is backed by several on-chain signals and exchange indicators that are bearish, including a negative net growth in transactions, a volume imbalance between bids and asks, and an increase in selling pressure.
The overall mood is still mixed.
AVAX is currently moving lower than all averages. This indicates a bearish direction in the short term. The RSI sitting at 40 means that the asset is neither overbought nor oversold—neither bullish nor bearish.
Bollinger Bands shows that AVAX is mostly trading in the band, which indicates stable volatility. According to the periodic breaks under the lower band, the bears seem to be in full command.
AVAX’s derivatives trading activity plunges
AVAX’s Derivatives Market isn’t easy.
The volume of trading has dropped by 52.41% and is now $352.50 Million. This indicates a significant reduction in the activity. It could indicate a fall in interest in markets or that recent price fluctuations have led to consolidation.
Binance’s AVAX/USDT shows an interesting trend: a greater ratio of long-term positions (1.7824), which indicates that traders have a more positive outlook on the pair.
Moreover, AVAX’s Accumulation/Distribution Line is on a decline.
Click Here to Read Avalanche’s [AVAX] Price Prediction 2024-25
The trend indicates that the market is under pressure to sell or there are no new buyers, a negative signal.
MACD (a momentum-following trend indicator) shows a negative crossover, which can usually be considered as a buy signal. AVAX has not been favored by traders.
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Source: ambcrypto.com