Connect with us
Active Currencies 14909
Market Cap $2,553,504,286,393.10
Bitcoin Share 51.51%
24h Market Cap Change $1.53

AVAX’s price – Up to hit $37 or down to $32?

3min Read

After shredding 5.62% of its value, AVAX’s price might not be ready to recover. Here’s why.

AVAX at a crossroads: Will prices hit $37 or drop to $32?

Share this article

  • Long positions targeting $37 might experience large-scale liquidations.
  • If the money flow stalls, AVAX could drop to $32.

AMBCrypto’s analysis of the Liquidation Levels has flashed a warning signal for Avalanche [AVAX] traders. According to the data evaluated using Hyblock Capital, there was a cluster of liquidity around the $37 region.

For context, Liquidation Levels show the estimated prices where a liquidation event might occur. From the chart below, AVAX might proceed toward $37.

Is south the next direction?

But once it hits the zone, it could trigger the stop loss of long positions with high leverage. Upon hitting this level, very little liquidity might be left, forcing the price to reverse southward.

AVAX liquidation levels

Source: HyblockCapital

AMBCrypto also observed the Cumulative Liquidation Level Delta (CLLD), which seemed to show a similar signal. The CLLD can be used to establish a directional bias for a cryptocurrency.

At press time, the CLLD was positive. But this position suggests that AVAX might undergo a full retracement, which could plunge the price.

AVAX’s price at press time was $34.54, indicating a 5.62% 24-hour decrease. Also, the trading volume of the ninth most valuable cryptocurrency decreased.

A situation like this means that the price action has become weak. Should the volume increase while the price decreases, AVAX might drop as low as $32.

But it is important to assess the possibility from a technical perspective, which we did.

AVAX eyes $32

According to the daily chart, the AVAX was on the verge of dropping below the short and mid-term EMAs. EMA is a short for Exponential Moving Average. At press time, the 20 EMA (blue)  and 20 EMA (yellow) were almost at the same spot.

This suggests that AVAX does not have a clear direction yet. Should the price break below the EMAs, then AVAX’s next move could either be a decline to $33.10 or $32.06.

Either way, a price decrease looks more likely for the token.

But if the 20 EMA rises past the 50 EMA, the bearish thesis could be invalidated. Regarding the Money Flow Index (MFI), the chart showed that the reading had increased.

This increase suggests that bulls were trying to effect a positive capital flow to impact an uptrend for AVAX. If this continues, AVAX might target $37.

However, it could face rejection at the level, considering the liquidity cluster at that point.

AVAX/USD price analysis on the Daily Chart

Source: TradingView

The Relative Strength Index (RSI) also rose to 49.87, indicating a slight increase in buying momentum. If the RSI flips 50.00, AVAX could recover to $35. If not, the token could continue trading between $32 and $35.


Read Avalanche’s [AVAX] Price Prediction 2024-2025


In terms of the Funding Rate, on-chain data showed that the metric was positive. If the Funding Rate, it means that the perp price is trading at a discount compared to the index value.

AVAX price and Funding Rate

Source: Santiment

However, the positive Funding Rate suggested that the perp price was at a premium compared to the spot. In addition, the positive Funding Rate while AVAX’s price drop infers a bearish signal.

Share

Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.