News View Non-AMP

AVAX Traders Strongly Bet on Short Side, Eyeing $29

Published by
Chandan Gupta

AVAX, the native token of Avalanche, seems bearish and is poised for a price decline as it has formed a bearish price action pattern on the daily time frame. However, the current market sentiment is quite unpredictable, with some cryptocurrencies witnessing price surges while others experience notable price declines.

AVAX Technical Analysis and Price Action

Amid this, AVAX has reached a crucial support level of $35 and is struggling to hold this level. Since December 2024, the altcoin has reached this level multiple times, and each time it witnessed a price surge. However, the current market sentiment seems unfavorable for AVAX and indicates that it could fail to hold this level.

Based on recent price action and historical momentum, if AVAX fails to hold this level and closes a daily candle below the $34.50 level, it could drop by 14% to reach the $29 level in the coming days.

Besides this bearish price action, AVAX’s Relative Strength Index (RSI) currently lies near the oversold area, indicating a potential price reversal. However, this reversal seems difficult for the altcoin.

Traders’ Bearish Outlook

Looking at the market sentiment, traders strongly bet on short positions, as revealed by the on-chain analytics firm Coinglass. At press time, the AVAX long/short ratio stands at 0.85, indicating bearish sentiment among traders. Data further reveals that 54.5% of top AVAX traders currently hold short positions, while 45.5% hold long positions.

Despite the bearish sentiment and traders’ strong bets on short positions, long-term holders have shown strong interest and confidence in the altcoin.

Long-Term Holders Bullish Outlook

Data from the spot inflow/outflow metric revealed that exchanges have witnessed an outflow of AVAX worth $5.90 million in the past 24 hours. This data indicates long-term sentiment from investors who seem to be betting on AVAX, despite its price struggling to gain momentum.

AVAX is currently trading near $34.96 and has witnessed a price decline of 6.35% in the past 24 hours. During the same period, its trading volume increased by 30%, indicating rising participation from traders and investors compared to the previous day.

Chandan Gupta

Chandan Gupta is a crypto analyst and news writer at CoinPedia. He specializes in market analysis using on-chain metrics and industry insights to forecast market trends. With over four years of trading experience, Chandan simplifies complex concepts in technical and on-chain analysis, making them easy to understand. At CoinPedia, he leverages his expertise to identify and present emerging opportunities in the cryptocurrency space

Recent Posts

Shiba Inu Price Jump By 15% – More 60% Rally To Come

Shiba Inu (SHIB), the internet’s favorite dog-themed coin, is making headlines once again. Over the…

May 9, 2025

Virtuals Protocol Price Prediction 2025, 2026 – 2030: Will VIRTUAL Price Hit $5?

Story Highlights The Virtuals Protocol price today is . VIRTUAL price could reach a high…

May 9, 2025

StakeStone and WLFI Join Forces to Boost USD1 Stablecoin Liquidity

StakeStone has teamed up with the Trump family's crypto project, WLFI, to offer cross-chain liquidity…

May 9, 2025

“It Was a Vote Against Trump”: Tim Scott Blames Democrats for Stablecoin GENIUS Act Failure

The U.S. just stumbled on what could have been a breakthrough moment for crypto but…

May 9, 2025

Brazil’s B3 Exchange to Launch ETH and SOL Futures, Reduces Bitcoin Contract Size

Brazil’s B3 stock exchange will roll out Ethereum (ETH) and Solana (SOL) futures contracts on…

May 9, 2025

This New Cryptocurrency Could Outperform XRP and MATIC — Best Crypto to Buy Before June?

The crypto market in 2025 is no longer just about riding the waves of the…

May 9, 2025