Avalanche Price Bounces 14% as AVAX Bears Hibernate: Is Trend Shifting?
Avalanche, a layer 1 blockchain, has seen a dynamic performance recently, signaling an ascending trend. Over the past few days, the Avalanche price has faced strong selling pressure as market conditions fluctuated, with mounting pressure from bears that initially drove prices downward. However, recently, there has been a significant rebound, as most data points towards a bullish trend in investor sentiment.
Avalanche Price Bounces Back: Signs of a Market Recovery
According to data from IntoTheBlock, the AVAX price is currently experiencing a notable uptick in its market dynamics. This increase is alongside a reported growth in large transactions, which have risen by 0.75% over the past week, totalling 648 txs transactions deemed ‘large’ by the platform’s criteria.
The observed spike in large transactions suggests increased confidence among high-stake investors, fueling the current price rebound in AVAX.
Over the past 24 hours, the Avalanche price has increased significantly by 9%, reflecting positive sentiment among investors and traders. The token is currently hovering above the $20 support level, showcasing resilience despite volatile market conditions. The layer 1 cryptocurrency has experienced a price movement from a low of $19.22 to a high of $21.04 before slightly retracting.
At the time of writing, the AVAX price is trading at $20.97, with a strong surge observed during the U.S. trading hours, indicating increased trading activity and investor interest.
Can AVAX Reach $25 Amidst Current Market Recovery?
With the current market rebound, if the upward trend intensifies, the Avalanche price might climb past the $22 resistance level. Should the bullish momentum persist, AVAX price could reach $24 and $25 by week’s end.
The 4-hour technical indicators for Avalanche show signs of a potential recovery as the price action presents a bullish trend. The Relative Strength Index (RSI) is stabilising around 45.34, which suggests a neutral momentum with potential for upward movement if buying pressure increases.
According to Coinglass data, the AVAX market has seen mixed trends. Trading volume decreased by 45.72% to $750.33 million, while open interest surged by 9.35%, reaching $188.87 million.
This reflects a weak bullish sentiment among traders. Despite the drop in volume suggesting reduced activity, the rise in open interest indicates new positions being cautiously opened, pointing to tentative bullish expectations in the AVAX market.
Conversely, if bearish forces prevail, increasing market pressure, the Avalanche price prediction might drop below the $20 support mark. A further decline to $18 could occur. The altcoin might plummet to $15 in a severe downturn, signalling heightened sell-off activities.
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