- Avalanche’s liquidation will increase when the price reaches $61.4.
- The market indicators looked bearish on the token.
Avalanche [AVAX] It took investors by surprise when it broke away from the entire crypto market in recent days. So let’s take a closer look at the token’s stats to see what makes AVAX behave differently from the rest.
There are avalanche bulls
While most cryptos suffered losses due to the recent bearish market conditions, AVAX moved in the opposite direction. According to CoinMarketCapAVAX is up more than 40% in the past seven days.
In the last 24 hours alone, the value of the token has increased by more than 22%. At the time of writing, AVAX was trading at $60.18 with a market cap of over $22 billion. The good news was that the token’s trading volume also increased by 35% in the last 24 hours, which acted as a basis for the price increase.
Thanks to the bull rally, Avalanche’s price volatility rose significantly for one week. Furthermore, positive sentiment surrounding the token was also high, meaning investors had confidence in AVAX’s bull rally and expected its value to rise further.
Source: Santiment
Things also looked quite optimistic on the derivatives market. AMBCrypto’s analysis of Coinglass’ facts revealed that AVAX’s funding rate rose, indicating that derivatives investors were actively buying the token.
Moreover, open interest rose along with the price. When the benchmark goes up, it increases the chance that the current price trend will continue.
Source: Coinglass
High liquidation prospect
While the above metrics look bullish, AVAX will witness high liquidations if rice rises.
To be precise, an analysis of Hyblock Capital’s data shows that Avalanche’s liquidation will increase when the price reaches the $61.5 and $62 mark.
High liquidation means an increase in selling pressure, which could end the token’s bull rally.
Source: Hyblock Capital
To better understand whether AVAX will manage to maintain its rally, AMBCrypto looked at the daily chart. We found that the price of the token reached the upper limit of the Bollinger Bands.
Read Avalanche of [AVAX] Price prediction 2024-25
Moreover, Avalanche’s Relative Strength Index (RSI) also entered overbought territory. Both figures indicated that selling pressure on AVAX could increase, causing a price correction in the near term.
Nevertheless, the MACD remained in favor of the buyers as it showed a bullish edge in the market.
Source: TradingView