Avalanche Price Forecast: AVAX bulls aim for double-digit rally amid increase in bullish bets

Source Fxstreet
  • Avalanche price extends its gains on Monday after rallying nearly 9% in the previous week.
  • On-chain metrics suggest a bullish picture as AVAX’s long-to-short ratio reached its highest in over a month.
  • The technical outlook and funding rates data suggest a rally continuation, targeting an additional 20% gain.

Avalanche (AVAX) price extends its gains by 7%, trading above $21 on Monday after rallying almost 9% the previous week. On-chain metrics suggest a bullish outlook as AVAX’s long-to-short ratio reached its highest in over a month. The technical analysis and funding rates data suggest a rally continuation, targeting 20% additional gains.

Avalanche shows bullish bias as it closes above its descending trendline

Avalanche price broke and found support around its descending trendline (drawn by connecting multiple high levels from mid-December) last week and rallied nearly 7%. At the start of this week, on Monday, it is continuing to trade above $21.39, scoring 7% in gains.

If AVAX continues the upward trend and closes above its weekly resistance at $20.99, it could extend the rally by 17% to retest its next key level at $24.99. A successful close above this level would extend additional gains by 20% to retest its key psychological level of $30.

The Relative Strength Index (RSI) on the daily chart reads 53, pointing upward above its neutral level of 50, indicating bullish momentum. The Moving Average Convergence Divergence (MACD) indicator on the daily chart also showed a bullish crossover last week, giving buy signals and indicating an upward trend. 

AVAX/USDT daily chart

AVAX/USDT daily chart

Another bullish sign is Coinglass’ AVAX long-to-short ratio, which reads 1.18, the highest level in over a month. This ratio above one reflects bullish sentiment in the markets as more traders are betting for the asset price to rise.

AVAX long-to-short ratio chart. Source: Coinglass

AVAX long-to-short ratio chart. Source: Coinglass

According to Coinglass’s OI-Weighted Funding Rate data, the number of traders betting that the price of Avalanche will slide further is fewer than those anticipating a price increase. 

This index is based on the yields of futures contracts, which are weighted by their open interest rates. Generally, a positive rate (longs pay shorts) indicates bullish sentiment, while negative numbers (shorts pay longs) indicate bearishness.

In the case of AVAX, the metric increased from -0.0065% on Friday to 0.0051% on Monday, reflecting a positive rate and indicating that longs are paying shorts. This scenario often signifies bullish sentiment in the market, suggesting potential upward pressure on Avalanche’s price.

AVAX OI-Weighted Funding Rate chart. Source: Coinglass

AVAX OI-Weighted Funding Rate chart. Source: Coinglass

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Pattern Breaks: Price Near ATH, But HODLers Still Not SellingOn-chain data shows HODLing behavior remains dominant among the Bitcoin investors despite the fact that the price is near the all-time high (ATH).
Author  Bitcoinist
Yesterday 10: 06
On-chain data shows HODLing behavior remains dominant among the Bitcoin investors despite the fact that the price is near the all-time high (ATH).
placeholder
Unlocking Future Growth? Alibaba Raises $1.53 Billion via Zero-Coupon Bond to Boost Cloud and Global ExpansionOn July 4, Alibaba Group announced the successful completion of its zero-coupon exchangeable bond issuance , raising HKD 12.023 billion (approximately USD 1.53 billion).
Author  TradingKey
Yesterday 10: 02
On July 4, Alibaba Group announced the successful completion of its zero-coupon exchangeable bond issuance , raising HKD 12.023 billion (approximately USD 1.53 billion).
placeholder
Silver Price Forecast: XAG/USD consolidates right below $37.00 in risk-off marketsSilver consolidates the previous two days' gains and remains pinned near $37.00.
Author  FXStreet
Yesterday 09: 59
Silver consolidates the previous two days' gains and remains pinned near $37.00.
placeholder
USD/JPY slumps to near 144.30 as Yen’s safe-haven demand increasesThe USD/JPY pair falls over 0.4% to near 144.30 during European trading hours on Friday.
Author  FXStreet
Yesterday 09: 57
The USD/JPY pair falls over 0.4% to near 144.30 during European trading hours on Friday.
placeholder
Non-Farm Payrolls Deflate Rate Cut Hopes with 147,000 New JobsOn Thursday in the US, a stronger-than-expected June non-farm payroll report dashed hopes for a rate cut in July.
Author  TradingKey
Yesterday 09: 45
On Thursday in the US, a stronger-than-expected June non-farm payroll report dashed hopes for a rate cut in July.
goTop
quote