Avalanche (AVAX) has been experiencing a downward trend in its price levels, leading traders in the derivatives market to shift from a bullish outlook to a bearish sentiment. Despite its strong performance in 2023 and the first quarter of 2024, the token’s price has been on the decline lately.
Currently trading at $31.53, AVAX’s Long/Short Ratio indicates that traders anticipate a further decrease in price despite the 8.66% decrease over the past 7 days. A Long/Short Ratio below 1 suggests a bearish outlook, and with AVAX’s ratio at 0.79, it indicates a prevailing negative sentiment in the market.
Open Interest for AVAX also aligns with the potential downward movement in price. As of now, the open interest stands at $211.64 million, lower than previous levels when the price was higher. This decrease in open interest suggests a possible decrease in value for the token.
On the daily chart, AVAX’s market structure indicates a potential fall in price. The Exponential Moving Average (EMA) has shown a bearish trend, with the 20 EMA crossing below the 50 EMA since April 13. Additionally, the Directional Movement Index (DMI) supports a potential decrease in price, with the -DMI higher than the +DMI indicating a downward direction for AVAX.
Overall, the analysis suggests that AVAX may drop below $30 in the short term unless there is a broader market recovery. Investors should conduct their own research and consult with professionals before making any financial decisions based on this information.
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