- AVAX appeared to consolidate around $38 despite mixed market signals
- Bullish sentiment on Binance and resistances at $50 and $55 could push the price towards $100
With the cryptocurrency market on fire due to the recent developments, Avalanche (AVAX) has caught the attention of many investors. Historically, AVAX has shown resilience even when faced with the toughest bear markets.
At the time of writing, AVAX was valued at $38.49, having appreciated 2.5% in just 24 hours. While this didn’t produce any significant gains, AVAX seemed to do much better than many of the other altcoins on the market. What does this mean for AVAX’s price development for the rest of the year?
To begin with, the current state of the AVAX market is characterized by neutral sentiment, with a rating of 42% on the Fear and Greed Index – a sign of balanced views among investors.
Source: CFGI
While social sentiment was very positive at the time of writing, other indicators such as volatility, volume and whale activity were negative – a sign of market uncertainty and reduced trading activity. Furthermore, the dominance and search interest for AVAX were also quite negative, indicating a lack of market control and lower overall interest.
Actually Coinglass’ facts revealed a huge drop in trading volume of 61.37%, with the same registration figures of $341.19 million at the time of writing. On the trading side, the long/short ratio seemed relatively balanced across the different platforms. This means that traders are currently unsure what to do with AVAX.
Source: Coinglass
Interestingly, however, the long/short ratio on Binance seemed significantly high at 2.8805. This could indicate more bullish sentiment among individual traders on this one exchange.
It is also worth noting that the six-month Avalanche chart showed a volatile trading pattern with several peaks and valleys. Simply put: a market that responds to broader market trends and specific ecosystem developments.
In recent months, AVAX has noticed many price spikes followed by sharp corrections in the charts. Currently, the altcoin appears to be consolidating around the $38 level, following a recent downtrend from April’s higher levels.
Source: TradingView
If AVAX maintains support around the $35 level, there could be potential for a move north, especially when the bull run begins. The key resistance levels to watch are around $50 and $55, levels that AVAX has tested several times in recent months.
A sustained break above these levels could indicate strong bullish momentum, potentially pushing the price towards $80 or even $100 in the third quarter of the year.