AVAX consolidates: Checking potential moves beyond $30 support level

  • AVAX was at a crossroads, with potential reversal or further decline.
  • Metrics indicate increased volatility.

Avalanche [AVAX] has been consolidating in an ascending triangle for the last three months. Since the 21st of May, the price has decreased gradually before retesting the $30 support level.

After its retest, the price has spiked by 5% on average in the last three days. Is AVAX building bullish momentum for a long-awaited price reversal, or will the prices sink deeper to an all time low?

As of this writing, the AVAX market cap stands at $12.66 billion, up 3.21% over the past 24 hours. 

The 50-day and 100-day exponential moving averages stand at $36.19 and $37.54 resistance levels, respectively. 

With AVAX trading below these resistance levels, the indicator suggests prevailing bearish sentiments. The stochastic RSI at 25.36 indicates an oversold zone vulnerable to price reversals.


Source: TradingView

What do metrics tell us?

AMBcrypto analysed on-chain data from Santiment for additional AVAX insights.

It was found that whale activity showed some changes in the percentage of total supply held by whales. Development Activity has fluctuated over the period, but the changes were moderate.

Avalanche AVAX 15.01.23 13 Jun 2024Avalanche AVAX 15.01.23 13 Jun 2024

Source: Santiment

Social volume metrics showed a shifting interest rate. After a significant peak on 21st March, there has been a decline in social mentions.

However, recently renewed social interest could build bullish momentum for the price surge.

Avalanche AVAX 15.01.18 13 Jun 2024Avalanche AVAX 15.01.18 13 Jun 2024

Source: Santiment

AMBCrypto then analysed the coinglass long/short ratio data, which indicated dominance in the short positions, but has recently surged to shift the pendulum to the long positions. 

This suggests that AVAX price may be at  a point of reversal if the bulls have started to take positions.

Momentum or decline?

The AVAX price is at a key point now. With the recent 5% surge after testing the $30 support level, bullish momentum can be imminent, as affirmed by gradual increased whale activity, social volume, and fluctuating development trends.

Read Avalanche’s [AVAX] Price Prediction 2024-25

If the support holds and AVAX’s bullish momentum continues, the price could break out of ascending triangle resistance for a bull run to around $36.

However, if the support level fails to hold, AVAX could drop further, potentially touching its all-time low.

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