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AVAX’s 40% decline since July: A setup for a bullish reversal?

2min Read

AVAX is approaching a key level, which hints at a potential price reversal.

Posted: August 4, 2024

By: Kelvin Murithi

Journalist

Edited By: Ann Maria Shibu

Kelvin Murithi

Journalist

Edited By: Ann Maria Shibu

Posted: August 4, 2024

AVAX price approaches key resistance at $24.9.
Liquidation data indicates increased market activity.

The Avalanche [AVAX] token is currently hovering around the key price level of $23.5, and this has sparked talks of potential price reversals.

AVAX has declined by over 40% since the 22nd of July. Market participants are observing closely for patterns of waning bearish pressure.

The recent 4% price movement implies that bullish momentum may be forming, which may in turn rise as it approaches the critical resistance level at $24.9.

Source: Tradingview

The stochastic RSI indicates an oversold market, which further fuels a potential reversal to upside momentum.

Liquidation heatmap signals increased AVAX activity

According to liquidation heatmap data from Coinglass, market activity has increased. The data indicate a concentration of liquidations around the $23–$24 zone.

Market participants are observing this price level, anticipating potential breakouts or rejections.

Source: Coinglass

Long-term holder behavior hints at bullish sentiment

Interestingly, the long-term holder behavior for AVAX indicates a potential bullish run. The distribution of AVAX among whales, investors, and retail holders indicates a steady increase in investor holdings since mid-2022.

Source: IntoTheBlock

The IntoTheBlock data on the large number of transactions indicates a positive trajectory. Despite the fluctuations in the large transactions, there is an overall increase, suggesting an increased interest in the Avalanche token at current levels.

AVAX

Source: IntoTheBlock

Market participants are keenly observing for signs of a potential price reversal as AVAX approaches the key resistance level of $23.5.

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The recent 4% spike in price and the accumulating bullish momentum fuel this possibility. The long-term holder data and recent price actions signal a potential bullish run.

However, a rejection at the $23.5 level could lead to a short-term pullback.

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Kelvin Murithi

Kelvin Murithi is an Economic and Crypto-Asset Analyst at AMBCrypto who provides a sophisticated, data-driven perspective on the financial markets. His analysis is deeply rooted in his academic and professional background, combining macroeconomic principles with technical asset analysis. He holds a Bachelor's degree in Economics and Statistics, which provides the rigorous quantitative foundation for his work in economic forecasting and investment strategy. Prior to specializing in the digital asset space, Kelvin honed his skills as a Financial and Data Analyst, where he was responsible for analyzing complex datasets and financial models. At AMBCrypto, Kelvin leverages this powerful blend of experience to deliver insightful price analysis. He specializes in interpreting how broader economic trends impact the cryptocurrency market, while also applying technical analysis to identify key price levels and potential trading opportunities. His mission is to equip readers with a multi-layered understanding of the market, enabling them to make strategic and well-informed investment decisions.