Can Avax Hold the $25 Support Level? Insights From Key Indicators
Analyst
- AVAX is up 3% from a key support level at $25.21.
- The metrics suggest mixed reactions.
Avalanche [AVAX] has finally broken its January low at $27.3, with the altcoin currently testing a key support level at $25.5.
The cryptocurrency market has been volatile in general, and AVAX has been no exception. Price action has fallen by over 40% since May 22.
AVAX has seen a 3% increase in the last 24 hours. This significant increase has raised concerns about the possibility of a deeper dip or a potential reversal.
At the time of writing, CoinMarketCap has valued 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 that could set the stage for a price reversal.
In addition, the MACD also highlighted the easing bearish pressure across the market.
What do these numbers tell us?
According to IntoTheBlock holder data, 48% of holders are currently operating profitably while 52% are losing money, indicating a balanced state.
The concentration of major holders is 71%, indicating significant whale activity that could have a significant impact on price changes.
In addition, the price correlation with Bitcoin of 0.86 shows that AVAX’s future could be closely tied to Bitcoin’s performance in the short term.
Source: IntoTheBlock
AskFX also analyzed Santiment’s social volume and whale activity to further assess the market direction. The social volume showed several spikes.
It suggests that traders’ interest and activity have increased. The number of stablecoins held by the top holder also indicated an uptrend.
This confirms that many holders are watching this critical support, which could give AVAX a bullish bias.
Source: Santiment
A tug of war between bulls and bears?
Coinglass’ long/short data shows several swings between long and short positions.
Currently, a gradual decline is being observed, an indication that short position holders are controlling the market in the short term.
Source: Coinglass
Realistic or not, here is AVAX’s market cap in BTC terms
What’s in store for AVAX?
Avalanche price is currently fluctuating around the $24.49 support level. A breakdown below this critical level could pave the way for further declines.
If the price can hold this level and move back, we could see a reversal with the next barrier at $29.22.
