- AVAX has surged by 3% from a crucial support level at $25.21
- Metrics indicates mixed reactions.
Avalanche [AVAX] has finally broken over its January low at $27.3, with the altcoin currently testing a critical support level at $25.5.
The cryptocurrency market in general has been volatile, and AVAX was no different. The price action has declined by over 40% since 22nd May.
AVAX witnessed a 3% surge in the last 24 hours. This significant surge has raised concerns about the possibility of a more severe collapse or a potential reversal.
As of this writing, CoinMarketCap priced AVAX at $25.21. I
Source: Tradingview
On the charts, the stochastic RSI (4.96) indicated an oversold zone. This is a sign that the level could be a critical longing point, which could form the basis for a price reversal.
Additionally, the MACD underlined fading bearish pressure across the market too.
What tale do the metrics tell?
According to IntoTheBlock’s holder data, 48% of holders are currently profitable, while 52% are losing money. This indicates a balanced condition.
The concentration by major holders is 71%, indicating significant whale activity that may have a significant impact on price changes.
Furthermore, the price correlation with Bitcoin of 0.86 shows that AVAX’s future may be tightly related to Bitcoin’s performance in the near term.
Source: IntoTheBlock
AMBCrypto further analyzed the Santiment social volume and whale activity to further evaluate the market direction. The social volume indicated several spikes.
It indicates that there has been heightened interest and activity among the traders. The number of stable coins held by the top holder also indicated an uptrend.
This affirms that many holders are observing this critical support, which may give AVAX a bullish bias.
Source: Santiment
A tug of war between bulls and bears?
The Coinglass long/short data shows several fluctuations between long position and short positions.
Currently, there has been a gradual decrease, an indication that short-position takers are in control of the market in the short-term.
Source: Coinglass
Realistic or not, here’s AVAX market cap in BTC’s terms
What is ahead for AVAX?
The avalanche price is currently hovering around the $24.49 support level. A breakdown below this critical level could pave the way for more declines.
If the price can hold this level and pull back, we might witness a reversal, with the next barrier at $29.22.
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