- Avalanche has gained over 4% in the last 24 hours, outperforming the broader crypto market.
- The token has seen a significant price reversal from a key support level at $19.56.
The Avalanche [AVAX] token has surged by over 4% in the last 24 hours, according to CoinMarketCap. This impressive gain has put AVAX among the top gainers in the crypto space at press time, as the broader market struggles to maintain its footing.
AVAX key support still holds
The recent price reversal from a crucial support level at $19.56 on 6th September is one of the key factors driving this bullish sentiment. This reversal suggests that AVAX may be entering a new phase of accumulation, and investors have flocked long positions with their eyes on the token’s long-term potential.
As a result of the influx in long positions, if the bullish momentum emanating from the increased activity persists, AVAX can successfully break above the $24 resistance level.
This level has acted as a strong resistance in the past, and a sustained move above it could open the door for further gains.
Source: TradingView
A deeper dive into the technical indicators reveals further reasons for AVAX optimism. The stochastic RSI indicator has crossed into the overbought territory, signaling a potential bullish trend.
Metrics paints a bullish picture
In fact, the above addressed significant inflow is affirmed by increased Avalanche large transactions. The market is at a decisive point, and big players are flocking the market. This further adds fuel to the anticipated big price movement.
Source: IntoTheBlock
Conversely, AVAX social mentions are on the rise with the social volume data from Santiment, which indicates a steady increase in social volumes. This is a positive signal for a bullish accumulation continuation.
Source: Santiment
However, our analysis of the Hyblock net long data showed worrying data.
The net long standing was at 84%, and this is a sign of market exhaustion. AVAX bulls have taken more than 75% of the coins open positions. This could land either way depending on their holding duration.
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If the whales holds AVAX for long without shorting, the bullish run will prevail.
Source: Hyblock
All the metrics give positive sentiments on the continuation of the Avalanche bullish rally. If the metrics persist, then the target level of $29.22 could be in sight.
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